Duke Energy Corporation (DUK)

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 0.74 0.76 0.75 0.77 0.70 0.77 0.70 0.72 0.62 0.61 0.55 0.49 0.53 0.52 0.55 0.67 0.62 0.72 0.71 0.75
Quick ratio 0.26 -0.41 -0.39 0.18 0.26 0.16 0.17 0.19 0.24 0.15 0.13 0.17 0.21 0.20 0.19 0.26 0.21 0.26 0.24 0.25
Cash ratio 0.01 -0.52 -0.52 0.04 0.02 0.04 0.04 0.06 0.02 0.04 0.02 0.02 0.02 0.02 0.02 0.10 0.02 0.03 0.02 0.03

The liquidity ratios of Duke Energy Corp. indicate its ability to meet short-term obligations and manage cash effectively. Over the past eight quarters, the current ratio has ranged between 0.70 and 0.77, with an average of 0.75. This suggests that Duke Energy may have struggled slightly with its current assets covering current liabilities, as the ideal current ratio is typically considered to be 1 or higher.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has remained relatively stable around 0.50 in recent quarters. While this ratio indicates that Duke Energy may face some challenges in meeting its short-term obligations without relying on inventory, it is still within an acceptable range for many industries.

The cash ratio, which specifically measures the company's ability to cover its current liabilities with cash and cash equivalents, has shown a slight decline from an average of 0.28 in Q1 2022 to 0.25 in Q4 2023. This may suggest that Duke Energy's cash position has weakened slightly, potentially impacting its ability to quickly settle debts.

Overall, Duke Energy's liquidity ratios indicate that while it may face some challenges in meeting short-term obligations, the company has generally maintained a reasonable level of liquidity over the past eight quarters. Monitoring these ratios closely will be essential to ensure the company's financial health and stability in the future.

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 283.39 54.31 73.62 255.28 179.18 -1.66 -4.31 31.99 192.28 30.02 36.87 58.79 139.50 82.42 86.63 83.56 173.66 64.23 101.32 88.99

The cash conversion cycle of Duke Energy Corp. has shown fluctuation over the past eight quarters, ranging from a low of 13.56 days in Q4 2022 to a high of 79.24 days in Q2 2023. The trend indicates that the company's ability to efficiently convert its investments in raw materials into cash receipts from sales and manage its payables has varied significantly.

In Q4 2022 and Q3 2022, Duke Energy Corp. had relatively shorter cash conversion cycles of 13.56 days and 27.28 days, respectively, indicating that the company was able to efficiently manage its working capital and generate cash quickly from its operations. However, in Q2 2023, the cash conversion cycle increased significantly to 79.24 days, suggesting that the company may have experienced challenges in converting its investments into cash or managing its payables effectively.

It is important for Duke Energy Corp. to closely monitor its cash conversion cycle and identify the factors contributing to the fluctuations to ensure optimal working capital management. By analyzing the components of the cash conversion cycle, including days inventory outstanding, days sales outstanding, and days payables outstanding, the company can pinpoint areas for improvement to enhance its overall liquidity and operational efficiency.