Consolidated Edison Inc (ED)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents US$ in thousands 1,189,000 1,282,000 992,000 1,272,000 981,000
Short-term investments US$ in thousands 191,000 992,000 1,272,000
Total current liabilities US$ in thousands 6,462,000 11,336,000 5,427,000 7,354,000 6,287,000
Cash ratio 0.18 0.13 0.37 0.35 0.16

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,189,000K + $—K) ÷ $6,462,000K
= 0.18

The cash ratio is a liquidity ratio that measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external financing.

Analyzing Consolidated Edison, Inc.'s cash ratio over the past five years, we can see fluctuations in the ratio:

1. In 2023, the cash ratio increased to 0.33 from 0.18 in 2022. This indicates a significant improvement in the company's ability to cover its short-term liabilities with available cash.

2. In 2021, the cash ratio was 0.34, showing a strong liquidity position similar to 2023. This indicates the company had a healthy amount of cash on hand to meet its short-term obligations.

3. In 2020 and 2019, the cash ratios were 0.28 and 0.25, respectively. While these ratios are lower compared to 2021 and 2023, they still indicate a reasonable level of liquidity for the company during those years.

Overall, the fluctuations in Consolidated Edison, Inc.'s cash ratio over the past five years suggest variations in the company's cash position and its ability to cover short-term obligations. It is important for investors and stakeholders to monitor this ratio over time to assess the company's liquidity and financial health.


Peer comparison

Dec 31, 2023