Edison International (EIX)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 610,000 | 6,811,000 | 7,070,000 | 5,491,000 | 5,061,000 |
| Total current liabilities | US$ in thousands | 8,439,000 | 8,598,000 | 10,347,000 | 8,609,000 | 10,277,000 |
| Current ratio | 0.07 | 0.79 | 0.68 | 0.64 | 0.49 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $610,000K ÷ $8,439,000K
= 0.07
The current ratio of Edison International has shown fluctuations over the years. As of December 31, 2020, the current ratio was 0.49, indicating that the company had less current assets to cover its current liabilities. However, there was an improvement in the current ratio by the end of 2021, reaching 0.64, and further improvement in 2022 and 2023, with ratios of 0.68 and 0.79 respectively.
The significant increase in the current ratio from 2020 to 2023 suggests that the company had better liquidity and was in a more favorable position to meet its short-term obligations. However, there was a substantial decline in the current ratio by the end of 2024, dropping to 0.07, which may raise concerns about the company's ability to cover its current liabilities with its current assets.
Overall, the trend in Edison International's current ratio shows fluctuations, indicating varying levels of liquidity and potential financial challenges in certain periods, particularly towards the end of 2024. It would be important for stakeholders to monitor this ratio closely to assess the company's short-term financial health.
Peer comparison
Dec 31, 2024