CenterPoint Energy Inc (CNP)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 90,000 | 74,000 | 230,000 | 147,000 | 241,000 |
| Short-term investments | US$ in thousands | 541,000 | 510,000 | 1,439,000 | 871,000 | 822,000 |
| Receivables | US$ in thousands | 1,320,000 | 1,673,000 | 1,204,000 | 1,263,000 | 1,941,000 |
| Total current liabilities | US$ in thousands | 3,864,000 | 5,113,000 | 4,287,000 | 4,825,000 | 3,978,000 |
| Quick ratio | 0.50 | 0.44 | 0.67 | 0.47 | 0.76 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($90,000K
+ $541,000K
+ $1,320,000K)
÷ $3,864,000K
= 0.50
The quick ratio of Centerpoint Energy Inc. has shown varying levels over the past five years. In 2023, the quick ratio decreased to 0.58 from the previous year's value of 0.75. This suggests a decline in the company's ability to meet its short-term obligations using its most liquid assets.
Comparing 2023 to 2021, the quick ratio significantly dropped from 1.03 to 0.58, indicating a substantial decrease in the company's short-term liquidity position. This decline may raise concerns about Centerpoint Energy Inc.'s ability to cover its current liabilities with its quick assets effectively.
Similarly, in 2020, the quick ratio was at a low of 0.50, reflecting a relatively weaker liquidity position compared to the other years. Despite this, there was an improvement in 2023 compared to 2020.
The quick ratio was relatively higher in 2019 at 0.85, suggesting better liquidity compared to the subsequent years up to 2023. Overall, the trend in Centerpoint Energy Inc.'s quick ratio indicates fluctuations in the company's ability to cover its short-term liabilities with its liquid assets over the past five years.
Peer comparison
Dec 31, 2023