Edison International (EIX)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 0.36 | 0.41 | 0.30 | 0.36 | 0.31 | 0.35 | 0.30 | 0.27 | 0.30 | 0.36 | 0.29 | 0.30 | 0.25 | 0.37 | 0.37 | 0.43 | 0.15 | 0.27 | 0.19 | 0.19 |
| 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 |
Edison International's liquidity ratios, namely the current ratio, quick ratio, and cash ratio, have shown some fluctuation over the past eight quarters.
The current ratio, which measures the company's ability to meet short-term liabilities with its current assets, has generally been below 1 in recent quarters, indicating that the company may have difficulties in meeting its current obligations. However, there has been a slight improvement from Q4 2022 to Q1 2023, with the ratio increasing from 0.68 to 0.86.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown a similar trend to the current ratio. It has improved from Q4 2022 to Q1 2023, increasing from 0.64 to 0.80. However, the ratios remain below 1, indicating potential liquidity challenges for the company.
The cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents, has varied significantly over the quarters. While there was an increase in the cash ratio from Q3 2022 to Q4 2022, from 0.23 to 0.41, the ratio has since decreased slightly in Q1 2023 to 0.54.
Overall, the liquidity ratios of Edison International suggest that the company may have some liquidity issues, as evidenced by the consistently low current and quick ratios. Management may need to closely monitor and improve the company's ability to meet its short-term obligations to ensure financial stability.
Additional liquidity measure
| 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 conversion cycle | days | -7.34 | -4.39 | -45.35 | -46.69 | -83.64 | -56.60 | -56.30 | -74.69 | -92.73 | -81.73 | -74.84 | -176.01 | 65.24 | -20,611.54 | -51,659.43 | -1,981.82 | -4,756.14 | -7,131.42 | -4,621.97 | 20.23 |
The cash conversion cycle for Edison International has shown fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle was 61.62 days, which was an improvement from the previous quarter at 72.18 days. This indicates that the company was able to convert its investments in inventory and receivables into cash more efficiently during this period.
Comparing the Q4 2023 data to previous quarters, it can be observed that the company had a relatively longer cash conversion cycle in Q3 2022 at 78.52 days. However, there was a significant improvement since then, with a decrease to 47.00 days in Q1 2023, showing better management of cash flow and working capital.
Overall, it is essential for Edison International to continue monitoring and managing its cash conversion cycle effectively to ensure optimal utilization of resources and maintain healthy liquidity levels. Keeping the cycle as short as possible while balancing operational efficiency will be crucial for the company's financial health and sustainability.