Dominion Energy Inc (D)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 3,509,000 | 4,457,000 | 3,347,000 | 3,607,000 | 3,541,000 |
| Total current liabilities | US$ in thousands | 24,476,000 | 13,450,000 | 8,673,000 | 10,843,000 | 9,940,000 |
| Quick ratio | 0.15 | 0.34 | 0.42 | 0.35 | 0.37 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($184,000K
+ $33,000K
+ $3,509,000K)
÷ $24,476,000K
= 0.15
The quick ratio of Dominion Energy Inc has varied over the past five years, ranging from a low of 0.21 in 2023 to a high of 0.65 in 2021. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets excluding inventory. A higher quick ratio indicates a stronger ability to cover short-term liabilities.
In 2023, the quick ratio dropped to 0.21, suggesting a potential liquidity risk as the company may face difficulties meeting its short-term obligations without relying on inventory. This may raise concerns about the company's ability to handle unexpected financial obligations or downturns in the business environment.
On the other hand, in 2021, the quick ratio improved to 0.65, indicating a better liquidity position compared to the other years. This suggests that Dominion Energy Inc had a stronger ability to quickly cover its short-term liabilities with its liquid assets in that particular year.
Overall, the fluctuation in Dominion Energy Inc's quick ratio over the five-year period may reflect changes in the company's financial condition, liquidity management, and ability to efficiently utilize its liquid assets to meet its short-term obligations.
Peer comparison
Dec 31, 2023