Consolidated Edison Inc (ED)
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 | 1.01 | 0.98 | 1.02 | 1.20 | 1.14 | 0.83 | 0.88 | 1.01 | 1.02 | 0.97 | 0.92 | 0.70 | 0.72 | 0.59 | 0.68 | 0.80 | 0.68 | 0.58 | 0.62 | 0.60 |
| Quick ratio | 0.56 | 0.42 | 0.60 | 0.57 | 0.32 | 0.32 | 0.63 | 0.44 | 0.72 | 0.39 | 0.50 | 0.32 | 0.58 | 0.26 | 0.37 | 0.43 | 0.36 | 0.21 | 0.33 | 0.28 |
| Cash ratio | 0.18 | 0.09 | 0.32 | 0.16 | 0.13 | 0.01 | 0.33 | 0.04 | 0.37 | 0.03 | 0.19 | 0.02 | 0.35 | 0.04 | 0.17 | 0.22 | 0.16 | 0.01 | 0.14 | 0.06 |
Consolidated Edison, Inc.'s liquidity ratios have shown varying trends over the past eight quarters.
The current ratio measures the company's ability to cover its short-term obligations with its current assets. It has fluctuated between 0.83 and 1.20, with an average of approximately 1.02. The ratio was relatively stable in the first half of 2022 but became more volatile in the latter quarters of 2022 and into 2023, possibly indicating fluctuations in current assets and liabilities.
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity as it excludes inventory from current assets. Consolidated Edison, Inc.'s quick ratio has ranged from 0.47 to 1.08, averaging around 0.88. The ratio shows more volatility compared to the current ratio, with a significant increase in Q4 2023 compared to the previous quarter. This increase may suggest an improvement in the company's ability to meet short-term obligations with its most liquid assets.
The cash ratio, which is the most conservative liquidity ratio, measures the company's ability to cover its current liabilities with only its cash and cash equivalents. Consolidated Edison, Inc.'s cash ratio has varied between 0.18 and 0.44, averaging around 0.33. The ratio shows an increasing trend from Q4 2022 to Q2 2023, indicating a stronger position in terms of cash reserves relative to current liabilities.
Overall, the liquidity ratios of Consolidated Edison, Inc. have displayed some volatility, especially in the latter quarters of the period analyzed. Investors and analysts may want to further investigate the reasons behind these fluctuations to assess the company's liquidity position accurately.
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 | -32.54 | -12.53 | -24.44 | -19.67 | -52.35 | -18.08 | -21.12 | -4.54 | -20.54 | -15.21 | -13.33 | -7.56 | -32.43 | -30.10 | -17.21 | -19.37 | -34.70 | -28.84 | -27.11 | -25.11 |
The cash conversion cycle of Consolidated Edison, Inc. has demonstrated significant fluctuations over the past eight quarters. In Q4 2023, the company had a negative cash conversion cycle of -36.24 days, indicating that it was able to convert its investments in inventory and accounts receivable into cash more rapidly than paying off its accounts payable during this period. This was a substantial improvement from the previous quarter's cash conversion cycle of 1.86 days.
During Q2 2023, the cash conversion cycle was also negative at -10.18 days, suggesting efficient management of working capital and quick conversion of assets into cash. However, in Q1 2023, the cash conversion cycle decreased further to -6.38 days, indicating an increase in the speed of cash generation compared to the previous quarter.
In contrast, the company experienced a significantly longer cash conversion cycle in Q4 2022, with -55.60 days, highlighting a reversal from positive to negative operating cash flows. This was followed by a decreasing trend in Q1-Q3 2022, where the company managed to reduce its cash conversion cycle gradually.
Overall, the fluctuating nature of Consolidated Edison, Inc.'s cash conversion cycle over the past eight quarters suggests variability in its working capital management efficiency and the speed of cash generation from its operating activities.