Dominion Energy Inc (D)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 184,000 | 119,000 | 283,000 | 172,000 | 135,000 |
| Short-term investments | US$ in thousands | 33,000 | 33,000 | 18,000 | 7,000 | 31,000 |
| Total current liabilities | US$ in thousands | 24,476,000 | 13,450,000 | 8,673,000 | 10,843,000 | 9,940,000 |
| Cash ratio | 0.01 | 0.01 | 0.03 | 0.02 | 0.02 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($184,000K
+ $33,000K)
÷ $24,476,000K
= 0.01
The cash ratio of Dominion Energy Inc has shown fluctuations over the past five years. The trend indicates a decrease from 0.17 in 2019 to 0.11 in 2023, with a notable dip observed in 2020 at 0.12. This ratio suggests that the company's ability to cover its short-term liabilities with its available cash and cash equivalents has decreased over time, indicating a potential liquidity challenge or a shift in the company's cash management strategy. While a higher cash ratio is generally preferred as it implies a stronger position to meet short-term obligations, Dominion Energy Inc may need to evaluate its liquidity management practices to ensure it can efficiently cover its near-term financial commitments.
Peer comparison
Dec 31, 2023