Duke Energy Corporation (DUK)

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 0.67 0.70 0.81 0.78 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
Quick ratio 0.02 0.02 0.03 0.04 0.02 -0.52 -0.53 0.03 0.02 0.04 0.04 0.06 0.02 0.04 0.03 0.03 0.02 0.02 0.02 0.10
Cash ratio 0.02 0.02 0.03 0.04 0.02 -0.52 -0.53 0.03 0.02 0.04 0.04 0.06 0.02 0.04 0.03 0.03 0.02 0.02 0.02 0.10

The current ratio of Duke Energy Corporation has been fluctuating over the past few years, starting at 0.67 in March 2020, reaching its lowest point at 0.49 in March 2021, and improving to 0.78 by March 2024. This ratio indicates a company's ability to cover its short-term liabilities with its short-term assets. A ratio below 1 may signal a potential liquidity issue, as the company may have difficulties meeting its short-term obligations.

The quick ratio, which excludes inventory from current assets, paints a more conservative picture of Duke Energy's liquidity. The quick ratio was very low in some periods, even turning negative in June 2023, possibly due to a significant decrease in liquid assets relative to current liabilities.

The cash ratio, which measures the company's ability to pay off its short-term liabilities with its cash and equivalents, followed a similar trend to the quick ratio. Duke Energy's cash ratio was low at some points, but improved over time, showing a moderate ability to cover its short-term obligations solely with cash and equivalents.

Overall, Duke Energy's liquidity ratios indicate that while there have been fluctuations and some periods of potential weakness, the company has shown improvement in its ability to meet short-term obligations and maintain liquidity over the years. It is essential for investors and analysts to continue monitoring these ratios to ensure the company's financial health and stability.


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 138.53 102.38 95.34 102.36 102.36 96.49 104.36 108.45 115.55 117.54 102.39 95.03 87.33 83.58 87.49 90.29 93.99 92.49 94.09 92.27

The cash conversion cycle of Duke Energy Corporation has fluctuated over the years, indicating varying efficiency in managing its cash flow and working capital.

From March 31, 2020, to June 30, 2021, the company showed a declining trend in its cash conversion cycle, suggesting an improvement in its ability to convert its investments in inventory and accounts receivable into cash. This is a positive sign as it indicates effective working capital management and faster cash turnover.

However, from September 30, 2021, to December 31, 2024, Duke Energy Corporation experienced an increasing trend in its cash conversion cycle. This uptrend implies that the company took longer to convert its investments in inventory and accounts receivable back into cash, which may indicate challenges in managing its working capital efficiently during this period.

The noticeable spike in the cash conversion cycle from September 30, 2022, to December 31, 2024, may suggest potential issues in managing inventory levels, extending credit to customers, or collecting accounts receivable promptly.

Overall, Duke Energy Corporation should monitor its cash conversion cycle closely and work towards improving it to enhance its liquidity position and operational efficiency. A lower cash conversion cycle indicates a quicker cash cycle, which can lead to better cash flow management and overall financial health.