Edison International (EIX)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 6,811,000 | 7,235,000 | 7,416,000 | 7,210,000 | 7,070,000 | 6,441,000 | 5,653,000 | 5,273,000 | 5,491,000 | 6,028,000 | 4,921,000 | 5,328,000 | 5,061,000 | 5,855,000 | 4,796,000 | 4,911,000 | 3,560,000 | 4,662,000 | 3,936,000 | 3,999,000 |
| 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 |
| Current ratio | 0.79 | 0.80 | 0.84 | 0.86 | 0.68 | 0.60 | 0.61 | 0.63 | 0.64 | 0.67 | 0.63 | 0.56 | 0.49 | 0.68 | 0.81 | 0.79 | 0.64 | 0.78 | 0.69 | 0.74 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,811,000K ÷ $8,598,000K
= 0.79
The current ratio for Edison International has shown some fluctuations over the past eight quarters. The current ratio measures the company's ability to cover its short-term obligations with its current assets. A current ratio above 1 indicates the company has more current assets than current liabilities, which is considered favorable.
Looking at the data provided, the current ratio has ranged from 0.60 to 0.86 over the past eight quarters. The current ratio has generally been below 1, which may indicate a potential liquidity risk as the company may have difficulty meeting its short-term obligations with its current assets alone.
The current ratio has shown improvement from Q4 2022 to Q1 2023, reaching a high of 0.86 in Q1 2023. However, the ratio then decreased in subsequent quarters, reaching a low of 0.79 in Q4 2023. This declining trend in the current ratio raises concerns about the company's ability to cover its short-term liabilities effectively.
Overall, the current ratio for Edison International indicates that the company may have some challenges in meeting its short-term obligations solely with its current assets. It is essential for the company to continue monitoring and managing its liquidity position to ensure it remains stable and can meet its financial obligations as they come due.
Peer comparison
Dec 31, 2023