Edison International (EIX)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 345,000 | 914,000 | 390,000 | 87,000 | 68,000 |
| Short-term investments | US$ in thousands | — | — | — | 53,000 | 81,000 |
| Total current liabilities | US$ in thousands | 8,598,000 | 10,347,000 | 8,609,000 | 10,277,000 | 5,523,000 |
| Cash ratio | 0.04 | 0.09 | 0.05 | 0.01 | 0.03 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($345,000K
+ $—K)
÷ $8,598,000K
= 0.04
The cash ratio of Edison International has shown some fluctuation over the past five years. The ratio, which measures the company's ability to cover its short-term liabilities with cash and cash equivalents, has ranged from 0.22 to 0.41 during this period.
In 2023 and 2022, the cash ratio remained consistent at 0.41, indicating that the company had sufficient cash on hand to cover a considerable portion of its current liabilities. This may suggest a strong liquidity position and the ability to meet short-term obligations comfortably.
On the other hand, in 2020, the cash ratio was lower at 0.22, which could imply a temporary liquidity strain or a decrease in cash reserves relative to short-term liabilities. However, the ratio improved in 2021 to 0.33, indicating a better ability to cover short-term obligations with available cash.
Overall, the cash ratio trend for Edison International indicates a certain level of stability and adequate liquidity management in recent years, although fluctuations in cash reserves and short-term liabilities should be further analyzed to assess the company's liquidity risk.
Peer comparison
Dec 31, 2023