Dominion Energy Inc (D)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.71 | 0.74 | 0.93 | 1.05 | 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 |
| Quick ratio | 0.03 | 0.87 | 0.02 | 0.02 | 0.01 | 0.03 | 0.02 | 0.15 | 0.06 | 0.02 | 0.17 | 0.05 | 0.03 | 0.01 | 0.02 | 0.29 | 0.29 | 0.02 | 0.07 | 0.12 |
| Cash ratio | 0.03 | 0.87 | 0.02 | 0.02 | 0.01 | 0.03 | 0.02 | 0.15 | 0.06 | 0.02 | 0.17 | 0.05 | 0.03 | 0.01 | 0.02 | 0.29 | 0.29 | 0.02 | 0.07 | 0.12 |
Dominion Energy Inc's liquidity ratios have shown fluctuating trends over the available periods.
The current ratio, which measures the company's ability to meet short-term liabilities with its short-term assets, varied between 0.56 to 1.14. The ratio improved from 0.56 in March 2021 to 1.14 in September 2023, indicating a stronger ability to cover current obligations. However, it decreased to 0.71 by December 2024, reflecting a decline in short-term liquidity.
The quick ratio, also known as the acid-test ratio, assesses immediate short-term liquidity without considering inventory. Dominion Energy's quick ratio significantly fluctuated, ranging from 0.01 to 0.87. Notably, the ratio spiked to 0.87 in September 2024, indicating a substantial increase in the ability to cover short-term liabilities swiftly.
The cash ratio, similar to the quick ratio but focusing solely on cash and cash equivalents, showed a similar pattern of fluctuation. The ratio varied from 0.01 to 0.29, with a notable peak of 0.29 in March 2021. However, in September 2024, the cash ratio surged to 0.87, indicating a significant increase in the company's cash reserves compared to its short-term obligations.
Overall, Dominion Energy Inc's liquidity ratios demonstrate mixed performance over the available periods, with fluctuations suggesting varying levels of short-term liquidity and the ability to meet current obligations. It is essential for investors and stakeholders to closely monitor these ratios to assess the company's liquidity position effectively.
Additional liquidity measure
| 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 conversion cycle | days | 85.43 | 84.18 | 85.18 | 83.72 | 83.28 | 71.93 | 78.37 | 73.66 | 68.99 | 76.03 | 72.08 | 72.46 | 82.02 | 82.23 | 80.36 | 77.88 | 82.35 | 78.22 | 84.70 | 74.02 |
The cash conversion cycle of Dominion Energy Inc has shown some fluctuations over the reported periods.
The cash conversion cycle is a measure of how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle is generally favorable as it indicates that the company is efficient in managing its working capital.
From March 31, 2020, to December 31, 2024, the company's cash conversion cycle ranged from a low of 68.99 days to a high of 85.43 days. The trend over the periods appears to be somewhat volatile, with peaks and valleys in the cycle duration.
During the most recent reported period, the cash conversion cycle stood at 85.43 days, which suggests that Dominion Energy Inc took on average 85.43 days to convert its investments in inventory and other resources into cash flows from sales. This longer cycle may indicate inefficiencies in managing working capital or inventory levels.
It is essential for the company to closely monitor and manage its cash conversion cycle to ensure optimal efficiency in working capital management and improve overall financial performance. Periodic review and adjustments to operational processes may be necessary to maintain a healthy cash conversion cycle.