Edison International (EIX)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 4,000 345,000 914,000 390,000 87,000
Short-term investments US$ in thousands -501,000 53,000
Total current liabilities US$ in thousands 8,439,000 8,598,000 10,347,000 8,609,000 10,277,000
Cash ratio 0.00 -0.02 0.09 0.05 0.01

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($4,000K + $—K) ÷ $8,439,000K
= 0.00

The cash ratio for Edison International has shown a fluctuating trend over the years. As of December 31, 2020, the cash ratio was quite low at 0.01, indicating that the company had minimal cash available to cover its current liabilities. However, there was a significant improvement by December 31, 2021, with the cash ratio increasing to 0.05, suggesting a better ability to meet short-term obligations with cash on hand.

By December 31, 2022, the cash ratio further increased to 0.09, signaling a strengthening liquidity position for the company. This indicates that Edison International had a sufficient amount of cash to cover its immediate financial obligations.

However, by December 31, 2023, the cash ratio turned negative at -0.02, which raises concerns as it implies that the company's cash on hand was insufficient to cover its current liabilities. It is important for Edison International to closely monitor and manage its cash position to ensure it can meet its short-term financial commitments.

As of December 31, 2024, the cash ratio stabilized at 0.00, suggesting that the company had just enough cash to cover its short-term liabilities. It would be essential for Edison International to focus on maintaining a healthy cash position to ensure financial stability and meet its operational needs in the future.