CenterPoint Energy Inc (CNP)
Quick ratio
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 | ||
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Cash | US$ in thousands | 90,000 | 120,000 | 214,000 | 114,000 | 74,000 | 114,000 | 555,000 | 125,000 | 230,000 | 133,000 | 136,000 | 146,000 | 147,000 | 185,000 | 168,000 | 220,000 | 241,000 | 259,000 | 271,000 | 255,000 |
Short-term investments | US$ in thousands | 541,000 | 566,000 | 517,000 | 548,000 | 510,000 | 452,000 | 658,000 | 720,000 | 1,439,000 | 911,000 | 923,000 | 848,000 | 871,000 | 836,000 | 753,000 | 678,000 | 822,000 | 746,000 | 687,000 | 623,000 |
Receivables | US$ in thousands | 1,320,000 | 1,174,000 | 945,000 | 1,279,000 | 1,673,000 | 1,088,000 | 1,102,000 | 1,375,000 | 1,204,000 | 957,000 | 999,000 | 1,202,000 | 1,263,000 | 1,117,000 | 1,010,000 | 1,124,000 | 1,941,000 | 1,563,000 | 1,607,000 | 1,866,000 |
Total current liabilities | US$ in thousands | 3,864,000 | 3,893,000 | 3,184,000 | 3,150,000 | 5,113,000 | 4,611,000 | 4,318,000 | 4,605,000 | 4,287,000 | 4,507,000 | 3,369,000 | 4,326,000 | 4,825,000 | 3,830,000 | 4,309,000 | 4,042,000 | 3,978,000 | 3,434,000 | 2,996,000 | 3,139,000 |
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 |
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 measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company can cover its current liabilities using its quick assets, which include cash, marketable securities, and accounts receivable.
Looking at the quick ratio trend for Centerpoint Energy Inc. over the past eight quarters, we observe fluctuations in the company's ability to cover its short-term liabilities.
In Q4 2023, the quick ratio was 0.58, which indicates that the company had $0.58 in quick assets for every $1 of current liabilities. This represents a slight decrease from the previous quarter's quick ratio of 0.57. The downward trend in the quick ratio may suggest a potential liquidity challenge for Centerpoint Energy Inc. during this period.
Comparing Q4 2023 to the same quarter in the previous year (Q4 2022), where the quick ratio was also 0.75, we see a notable decrease in liquidity. This decline could be attributed to changes in the company's current assets and liabilities mix or operational inefficiencies impacting cash flow management.
It is essential for Centerpoint Energy Inc. to closely monitor and manage its liquidity position to ensure it can meet its short-term obligations and sustain its operations effectively. A deteriorating quick ratio trend may raise concerns among investors and creditors regarding the company's financial health and ability to manage its working capital efficiently. Further analysis of the components contributing to the quick ratio and financial performance as a whole would provide deeper insights into the company's liquidity management.
Peer comparison
Dec 31, 2023