Edison International (EIX)
Cash ratio
| 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 and cash equivalents | US$ in thousands | 345,000 | 446,000 | 195,000 | 836,000 | 914,000 | 232,000 | 122,000 | 231,000 | 390,000 | 524,000 | 84,000 | 389,000 | 87,000 | 92,000 | 524,000 | 1,337,000 | 68,000 | 547,000 | 257,000 | 328,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | 13,000 | 21,000 | 59,000 | 53,000 | 85,000 | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 8,598,000 | 9,027,000 | 8,827,000 | 8,366,000 | 10,347,000 | 10,820,000 | 9,262,000 | 8,342,000 | 8,609,000 | 8,962,000 | 7,815,000 | 9,497,000 | 10,277,000 | 8,616,000 | 5,899,000 | 6,248,000 | 5,523,000 | 6,003,000 | 5,665,000 | 5,375,000 |
| Cash ratio | 0.04 | 0.05 | 0.02 | 0.10 | 0.09 | 0.02 | 0.01 | 0.03 | 0.05 | 0.06 | 0.01 | 0.05 | 0.01 | 0.02 | 0.09 | 0.21 | 0.01 | 0.09 | 0.05 | 0.06 |
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 eight quarters. The ratio measures the company's ability to cover its short-term obligations using cash and cash equivalents.
The cash ratio ranged from 0.23 to 0.54 during this period, indicating varying levels of liquidity. A higher ratio suggests that the company has more cash on hand relative to its current liabilities, providing a greater ability to meet its short-term commitments.
In Q2 2023, the cash ratio was at its highest point of 0.50, demonstrating a notable improvement in liquidity compared to the previous quarter. However, in Q3 2022, the ratio was at its lowest at 0.23, indicating a potential liquidity strain. Overall, the company's cash ratio has shown some volatility, suggesting fluctuations in its ability to cover short-term obligations solely with cash.
It is important for investors and stakeholders to monitor the cash ratio trend over time to assess Edison International's liquidity position and ability to manage short-term financial obligations effectively.
Peer comparison
Dec 31, 2023