Dominion Energy Inc (D)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 310,000 | 184,000 | 153,000 | 283,000 | 172,000 |
| Short-term investments | US$ in thousands | — | 7,184,000 | 605,000 | 18,000 | 2,934,000 |
| Total current liabilities | US$ in thousands | 5,637,000 | 24,476,000 | 13,450,000 | 8,673,000 | 10,843,000 |
| Cash ratio | 0.05 | 0.30 | 0.06 | 0.03 | 0.29 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($310,000K
+ $—K)
÷ $5,637,000K
= 0.05
The cash ratio reflects Dominion Energy Inc's ability to cover its short-term liabilities with cash and cash equivalents. Analyzing the cash ratio trend from 2020 to 2024, we observe fluctuations.
In December 2020, the cash ratio stood at 0.29, indicating that Dominion Energy had $0.29 in cash and cash equivalents for every dollar of current liabilities. However, by the end of 2021, the cash ratio dropped significantly to 0.03, suggesting a decrease in the company's ability to meet its short-term obligations solely with cash.
Subsequently, in December 2022, the cash ratio improved slightly to 0.06, albeit still at a relatively low level. By the end of 2023, there was a notable increase in the cash ratio to 0.30, indicating an enhancement in Dominion Energy's liquidity position compared to the previous year.
However, by December 2024, the cash ratio decreased again to 0.05, showing a reduction in the company's ability to cover its short-term liabilities with cash and cash equivalents.
Overall, the fluctuations in Dominion Energy Inc's cash ratio over the years suggest varying levels of liquidity and the importance of monitoring the company's ability to meet its short-term obligations with available cash resources.
Peer comparison
Dec 31, 2024