CenterPoint Energy Inc (CNP)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.78 | 0.78 | 0.88 | 1.00 | 0.92 | 0.89 | 1.03 | 0.91 | 1.72 | 1.71 | 1.54 | 0.74 | 0.61 | 0.73 | 0.58 | 1.03 | 0.99 | 0.99 | 1.11 | 1.09 |
| Quick ratio | 0.50 | 0.48 | 0.53 | 0.62 | 0.44 | 0.36 | 0.54 | 0.48 | 0.67 | 0.44 | 0.61 | 0.51 | 0.47 | 0.56 | 0.45 | 0.50 | 0.76 | 0.75 | 0.86 | 0.87 |
| 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 |
Centerpoint Energy Inc.'s liquidity ratios have shown varying trends over the past eight quarters. The current ratio, a measure of short-term liquidity, has fluctuated between 0.78 and 1.00, indicating that the company may have had some challenges meeting its short-term obligations in certain quarters. The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has also shown variability, ranging from 0.57 to 0.75. This suggests that the company may have limited ability to cover its immediate liabilities without relying on inventory.
The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents to cover current liabilities, has also exhibited fluctuations, ranging from 0.24 to 0.50. The declining trend in the cash ratio may indicate a weakening ability of the company to meet its short-term obligations using its available cash resources.
Overall, the liquidity ratios of Centerpoint Energy Inc. suggest that the company may have faced some challenges in maintaining adequate liquidity in certain quarters. It is important for investors and stakeholders to monitor these ratios closely to assess the company's ability to meet its short-term financial obligations.
Additional liquidity measure
| 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 conversion cycle | days | -10.92 | 65.34 | -2.32 | -8.48 | -115.66 | -10.84 | -102.30 | -138.40 | -168.19 | -80.75 | -96.16 | -108.22 | -51.37 | 27.36 | 17.70 | 12.67 | 55.35 | 45.39 | 33.67 | 15.04 |
The cash conversion cycle of Centerpoint Energy Inc. has exhibited fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle was 30.56 days, indicating an improvement compared to the previous quarter. This suggests that the company was able to convert its inventory and accounts receivable into cash more efficiently during this period.
However, in Q3 2023, the cash conversion cycle increased significantly to 52.72 days, reflecting a longer period required to convert inventory and receivables into cash compared to the previous quarter. This may indicate potential challenges in managing working capital effectively.
The cash conversion cycle improved in Q2 2023 to 24.45 days, showing a more efficient conversion of inventory and receivables into cash. This may be a positive sign of effective working capital management during that quarter.
In Q1 2023, the cash conversion cycle was 31.84 days, indicating a slight increase compared to the previous quarter. This suggests a longer time taken to convert inventory and receivables into cash during that period.
Notably, in Q4 2022, the cash conversion cycle was 9.30 days, showing a relatively efficient conversion of working capital into cash. This performance improved from the negative cash conversion cycle in Q3 2022, indicating more efficient management of inventory and receivables during that quarter.
Overall, Centerpoint Energy Inc. has experienced fluctuations in its cash conversion cycle, with some quarters showing improvements in working capital management while others indicating potential challenges. It is essential for the company to monitor and analyze these trends to ensure effective utilization of its resources and maintain a healthy cash flow position.