Duke Energy Corporation (DUK)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 12,769,000 | 13,222,000 | 9,940,000 | 8,682,000 | 9,163,000 |
| Total current liabilities | US$ in thousands | 17,283,000 | 18,873,000 | 15,931,000 | 16,305,000 | 14,752,000 |
| Current ratio | 0.74 | 0.70 | 0.62 | 0.53 | 0.62 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $12,769,000K ÷ $17,283,000K
= 0.74
The current ratio for Duke Energy Corp. has shown a fluctuating trend over the past five years. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A higher current ratio is generally considered favorable as it indicates that the company is better equipped to meet its short-term obligations.
In 2023, the current ratio improved to 0.74 from 0.70 in 2022, showing a positive trend in liquidity. This increase suggests that Duke Energy Corp. had a slightly stronger ability to cover its short-term liabilities with its current assets in 2023 compared to the previous year.
However, it is worth noting that the current ratio is still relatively low compared to 2019 when it was 0.62. This indicates that Duke Energy Corp. may have had difficulty covering its short-term obligations in recent years, but the 2023 improvement is a positive sign.
Overall, while the current ratio for Duke Energy Corp. has shown some improvement in 2023, it may be beneficial for the company to continue monitoring and managing its liquidity position to ensure it has sufficient current assets to meet its short-term liabilities effectively.
Peer comparison
Dec 31, 2023