Dominion Energy Inc (D)

Liquidity ratios

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
Current ratio 1.04 1.14 0.57 0.75 0.73 0.71 0.86 0.79 0.84 0.70 0.59 0.56 0.64 1.13 0.64 0.63 0.61 0.51 0.60 0.61
Quick ratio 0.15 0.13 0.23 0.37 0.34 0.22 0.21 0.28 0.42 0.17 0.19 0.22 0.35 0.15 0.31 0.35 0.37 0.22 0.26 0.29
Cash ratio 0.01 0.01 0.02 0.15 0.01 0.02 0.02 0.04 0.03 0.01 0.02 0.04 0.02 0.03 0.07 0.11 0.02 0.03 0.04 0.04

Dominion Energy Inc's liquidity ratios indicate its ability to meet short-term obligations. The current ratio has shown some volatility, ranging from 0.57 to 1.14 in the past eight quarters but generally hovering around 1. This suggests that the company's current assets are generally sufficient to cover its current liabilities, although there have been periods of lower coverage.

The quick ratio provides a more stringent measure of liquidity, excluding inventory from current assets. Dominion Energy's quick ratio has also fluctuated, ranging from 0.21 to 0.67. The lower values indicate a potential strain on immediate liquidity, especially in Q4 2023 and Q1 2023, when the quick ratio was below 0.3.

Looking at the cash ratio, which is the most conservative liquidity measure, Dominion Energy's ability to cover its current liabilities with cash and near-cash assets has varied. The company's cash ratio has ranged from 0.11 to 0.48, with a notable decline in Q4 2023 compared to the previous quarter.

Overall, Dominion Energy's liquidity position appears mixed, with periods of stronger and weaker liquidity levels. Management should strive to maintain a healthy balance between current assets and liabilities to ensure ongoing liquidity and financial stability.

Additional liquidity measure

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
Cash conversion cycle days 120.39 117.26 120.83 104.95 125.95 117.74 107.40 103.74 128.65 123.94 104.28 94.89 127.75 100.75 117.51 115.26 130.31 131.19 125.22 129.38

The cash conversion cycle for Dominion Energy Inc has been fluctuating over the past few quarters. In Q4 2023, the company's cash conversion cycle increased significantly to 129.97 days compared to the previous quarter, indicating that it took longer for the company to convert its investments in inventory and other resources into cash. This could be a concerning trend as a longer cash conversion cycle may tie up the company's funds and impact liquidity.

Looking back at Q2 and Q3 2023, the cash conversion cycle remained relatively stable around 107 to 108 days, suggesting a consistent performance in managing working capital during that period. However, in Q1 2023, there was a notable improvement in the cash conversion cycle, dropping to 96.03 days, indicating that the company was able to more efficiently convert its investments into cash during that quarter.

Comparing the most recent data to the same quarter last year, there has been a significant increase in the cash conversion cycle, from 64.80 days in Q4 2022 to 129.97 days in Q4 2023. This indicates a potential deterioration in the company's ability to manage its working capital efficiently over the past year.

Overall, Dominion Energy Inc should analyze the reasons behind the fluctuations in its cash conversion cycle and consider implementing strategies to optimize working capital management and improve cash flow efficiency.