CenterPoint Energy Inc (CNP)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 24,000 90,000 74,000 230,000 147,000
Short-term investments US$ in thousands 561,000 541,000 510,000 1,439,000 871,000
Receivables US$ in thousands
Total current liabilities US$ in thousands 4,045,000 3,864,000 5,113,000 4,287,000 4,825,000
Quick ratio 0.14 0.16 0.11 0.39 0.21

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($24,000K + $561,000K + $—K) ÷ $4,045,000K
= 0.14

The quick ratio of CenterPoint Energy Inc has shown fluctuations over the years. In December 31, 2020, the quick ratio was at a low of 0.21, indicating that the company may have had difficulty meeting its short-term obligations with its highly liquid assets. However, there was an improvement in December 31, 2021, where the quick ratio increased to 0.39, suggesting a better ability to cover short-term liabilities with liquid assets.

Subsequently, in December 31, 2022, the quick ratio dropped significantly to 0.11, signaling potential liquidity challenges for the company in meeting immediate financial obligations. This was followed by a slight increase in December 31, 2023, with the quick ratio improving to 0.16, though it still remained relatively low.

In December 31, 2024, the quick ratio decreased slightly to 0.14, indicating that the company may still be facing some liquidity concerns. Overall, the trend in the quick ratio for CenterPoint Energy Inc highlights the importance of closely monitoring the company's liquidity position to ensure it can meet its short-term financial commitments effectively.