CenterPoint Energy Inc (CNP)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,027,000 | 4,699,000 | 7,355,000 | 2,920,000 | 3,937,000 |
| Total current liabilities | US$ in thousands | 3,864,000 | 5,113,000 | 4,287,000 | 4,825,000 | 3,978,000 |
| Current ratio | 0.78 | 0.92 | 1.72 | 0.61 | 0.99 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,027,000K ÷ $3,864,000K
= 0.78
The current ratio of Centerpoint Energy Inc. has displayed fluctuations over the past five years. In 2023, the current ratio decreased to 0.78 from 0.92 in 2022, indicating a lower ability to cover short-term liabilities with current assets. This decline in the current ratio may raise concerns about the company's liquidity position and ability to meet its short-term obligations. Comparing 2023 to 2021, where the current ratio was 1.72, the decrease is significant and may suggest a potential deterioration in the company's liquidity position. It is noteworthy that in 2020, the current ratio was particularly low at 0.61, indicating a potential liquidity strain at that time. The current ratio improved in 2019 to 0.99, but it still signaled a lower liquidity level compared to 2021. Overall, the downward trend in the current ratio over the past few years may require further investigation into Centerpoint Energy Inc.'s liquidity management practices and financial health.
Peer comparison
Dec 31, 2023