CenterPoint Energy Inc (CNP)
Cash ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 90,000 | 120,000 | 214,000 | 114,000 | 74,000 | 114,000 | 555,000 | 125,000 | 230,000 | 133,000 | 136,000 | 146,000 | 147,000 | 185,000 | 168,000 | 220,000 | 241,000 | 259,000 | 271,000 | 255,000 |
| Short-term investments | US$ in thousands | 541,000 | 566,000 | 517,000 | 548,000 | 510,000 | 452,000 | 658,000 | 720,000 | 1,439,000 | 911,000 | 923,000 | 848,000 | 871,000 | 836,000 | 753,000 | 678,000 | 822,000 | 746,000 | 687,000 | 623,000 |
| Total current liabilities | US$ in thousands | 3,864,000 | 3,893,000 | 3,184,000 | 3,150,000 | 5,113,000 | 4,611,000 | 4,318,000 | 4,605,000 | 4,287,000 | 4,507,000 | 3,369,000 | 4,326,000 | 4,825,000 | 3,830,000 | 4,309,000 | 4,042,000 | 3,978,000 | 3,434,000 | 2,996,000 | 3,139,000 |
| Cash ratio | 0.16 | 0.18 | 0.23 | 0.21 | 0.11 | 0.12 | 0.28 | 0.18 | 0.39 | 0.23 | 0.31 | 0.23 | 0.21 | 0.27 | 0.21 | 0.22 | 0.27 | 0.29 | 0.32 | 0.28 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($90,000K
+ $541,000K)
÷ $3,864,000K
= 0.16
The cash ratio of Centerpoint Energy Inc. has exhibited a declining trend over the past eight quarters. The ratio, which measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, decreased from 0.42 in Q4 2022 to 0.24 in Q4 2023. This downward trend indicates that the company may be holding a lower proportion of cash relative to its current liabilities.
While a declining cash ratio may raise concerns about Centerpoint Energy Inc.'s liquidity position, it is important to consider other factors such as the nature of the company's operations and its cash flow management practices. It would be advisable to conduct a more holistic analysis of the company's financial health, including its operating cash flow, working capital management, and overall debt levels, to gain a clearer picture of its liquidity position.
Peer comparison
Dec 31, 2023