Dominion Energy Inc (D)
Quick ratio
| 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 | US$ in thousands | 184,000 | 137,000 | 137,000 | 1,792,000 | 119,000 | 163,000 | 272,000 | 444,000 | 283,000 | 180,000 | 240,000 | 477,000 | 172,000 | 413,000 | 675,000 | 1,192,000 | 135,000 | 378,000 | 382,000 | 422,000 |
| Short-term investments | US$ in thousands | 33,000 | 39,000 | 131,000 | 106,000 | 33,000 | 54,000 | 1,000 | 2,000 | — | 15,000 | 19,000 | 14,000 | 7,000 | 49,000 | — | — | 31,000 | — | — | — |
| Receivables | US$ in thousands | 3,509,000 | 2,560,000 | 2,895,000 | 2,835,000 | 4,457,000 | 2,445,000 | 2,522,000 | 2,505,000 | 3,347,000 | 2,059,000 | 1,975,000 | 2,080,000 | 3,607,000 | 2,176,000 | 2,273,000 | 2,425,000 | 3,541,000 | 2,335,000 | 2,096,000 | 2,439,000 |
| Total current liabilities | US$ in thousands | 24,476,000 | 21,633,000 | 13,986,000 | 12,762,000 | 13,450,000 | 12,172,000 | 13,166,000 | 10,581,000 | 8,673,000 | 13,223,000 | 11,676,000 | 11,836,000 | 10,843,000 | 17,560,000 | 9,537,000 | 10,448,000 | 9,940,000 | 12,191,000 | 9,503,000 | 9,776,000 |
| 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 |
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 shown fluctuations over the past eight quarters. The quick ratio, also known as the acid-test ratio, measures a company's ability to pay its short-term obligations using its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities with its liquid assets alone.
In Q1 2023, the quick ratio was at its highest at 0.62, indicating a relatively stronger liquidity position compared to other quarters. However, there was a significant decrease in Q2 2023 to 0.43, suggesting a potential decrease in the company's ability to cover its short-term obligations with liquid assets.
The quick ratio further decreased in Q3 2023 to 0.23, reaching its lowest point in the provided data series. This significant drop may raise concerns about the company's liquidity position and its ability to meet immediate financial obligations.
In Q4 2023, the quick ratio slightly improved to 0.21 but remained below the desired threshold of 1. This indicates that Dominion Energy Inc may still face challenges in promptly paying off its short-term liabilities without relying on selling its inventory or other long-term assets.
Overall, the decreasing trend in Dominion Energy Inc's quick ratio over the quarters raises concerns about the company's liquidity position and its ability to cover short-term obligations with its current liquid assets. Further analysis and monitoring of liquidity management strategies may be necessary to ensure the company's financial stability and operational continuity.
Peer comparison
Dec 31, 2023