Consolidated Edison Inc (ED)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 | — |
| Receivables | US$ in thousands | 2,406,000 | 2,192,000 | 1,934,000 | 1,720,000 | 1,252,000 |
| Total current liabilities | US$ in thousands | 6,462,000 | 11,336,000 | 5,427,000 | 7,354,000 | 6,287,000 |
| Quick ratio | 0.56 | 0.32 | 0.72 | 0.58 | 0.36 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,189,000K
+ $—K
+ $2,406,000K)
÷ $6,462,000K
= 0.56
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio of less than 1 indicates that a company may struggle to pay its current liabilities. Consolidated Edison, Inc.'s quick ratio has fluctuated over the past five years, ranging from 0.47 in 2022 to 0.91 in 2023 and 2021.
The significant increase in the quick ratio from 2022 to 2023 suggests an improvement in Consolidated Edison's liquidity position. This may indicate better management of current assets or a reduction in current liabilities compared to the previous year. However, it is important to note that while the quick ratio in 2023 is at a healthier level compared to 2022, it is still below 1, which could indicate that the company may still face challenges in meeting its short-term obligations with its readily available assets.
Looking back further, the quick ratio in 2021 was also 0.91, indicating a similar liquidity position to 2023. The quick ratio in 2020 and 2019 was lower, at 0.65 and 0.59 respectively, suggesting potential liquidity challenges in those years.
Overall, while the recent improvement in Consolidated Edison's quick ratio is a positive sign, investors and stakeholders should continue to monitor the company's liquidity position to ensure it can comfortably meet its short-term liabilities.
Peer comparison
Dec 31, 2023