CenterPoint Energy Inc (CNP)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,381,000 | 3,027,000 | 4,699,000 | 7,355,000 | 2,920,000 |
| Total current liabilities | US$ in thousands | 4,045,000 | 3,864,000 | 5,113,000 | 4,287,000 | 4,825,000 |
| Current ratio | 1.08 | 0.78 | 0.92 | 1.72 | 0.61 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,381,000K ÷ $4,045,000K
= 1.08
CenterPoint Energy Inc's current ratio has shown fluctuations over the past five years. Starting at a low of 0.61 in December 2020, the current ratio improved significantly to 1.72 by December 2021, indicating a strengthened ability to cover short-term obligations with current assets. However, in the following years, the ratio declined to 0.92 in December 2022, 0.78 in December 2023, and then slightly recovered to 1.08 by December 2024.
While the current ratio of 1.72 in December 2021 was notably healthy, the subsequent decreases suggest potential challenges in managing short-term liabilities with current assets. A current ratio below 1 may raise concerns about the company's liquidity and ability to meet its short-term obligations. It is important for CenterPoint Energy Inc to monitor its current ratio closely and ensure it maintains a reasonable balance between current assets and current liabilities for financial stability.
Peer comparison
Dec 31, 2024