Consolidated Edison Inc (ED)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 527,000 | 6,537,000 | 12,972,000 | 5,551,000 | 5,301,000 |
| Total current liabilities | US$ in thousands | 1,036,000 | 6,462,000 | 11,336,000 | 5,427,000 | 7,354,000 |
| Current ratio | 0.51 | 1.01 | 1.14 | 1.02 | 0.72 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $527,000K ÷ $1,036,000K
= 0.51
The current ratio of Consolidated Edison Inc has shown varying trends over the past five years, with values of 0.72, 1.02, 1.14, 1.01, and 0.51 for the years ending December 31, 2020, 2021, 2022, 2023, and 2024, respectively. A current ratio measures a company's ability to cover its short-term obligations with its current assets.
In 2020, the current ratio was low at 0.72, indicating that the company may have had difficulty meeting its short-term obligations with its current assets. However, in the subsequent years, the current ratio improved significantly to 1.02 in 2021, 1.14 in 2022, and 1.01 in 2023, suggesting that the company's liquidity position strengthened over this period.
The significant drop in the current ratio to 0.51 in 2024 raises a concern as it indicates a potential liquidity strain, where the company may struggle to meet its short-term obligations with its current assets. Further analysis is needed to understand the reasons behind this sharp decline in the current ratio and assess the company's current financial health and ability to manage its short-term obligations effectively.
Peer comparison
Dec 31, 2024