CenterPoint Energy Inc (CNP)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 24,000 | 112,000 | 82,000 | 179,000 | 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 |
| Short-term investments | US$ in thousands | 561,000 | 531,000 | 477,000 | 458,000 | 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 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 4,045,000 | 3,836,000 | 3,410,000 | 3,430,000 | 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 |
| Quick ratio | 0.14 | 0.17 | 0.16 | 0.19 | 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 |
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 fluctuated over the years, indicating the company's ability to meet its short-term obligations with its most liquid assets. The ratio has ranged between 0.11 and 0.39 during the period from March 31, 2020, to December 31, 2024.
The quick ratio reflects the company's ability to pay off its current liabilities without relying on the sale of inventory. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations, while a ratio above 1 signifies that the company can cover its short-term liabilities with its quick assets.
CenterPoint Energy Inc's quick ratio has shown some volatility, with significant changes observed from quarter to quarter. It is essential for the company to monitor and manage its liquidity position effectively to ensure it can meet its financial obligations in a timely manner, especially during periods of low quick ratio like in the quarters ending September 30, 2022, and December 31, 2022.
Overall, a thorough evaluation of the company's liquidity position and careful management of its quick assets will be crucial for maintaining financial stability and ensuring it can meet its short-term obligations effectively in the future.
Peer comparison
Dec 31, 2024