Edison International (EIX)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 345,000 | 914,000 | 390,000 | 87,000 | 68,000 |
| Short-term investments | US$ in thousands | — | — | — | 53,000 | 81,000 |
| Receivables | US$ in thousands | 2,758,000 | 2,336,000 | 2,192,000 | 2,427,000 | 788,000 |
| Total current liabilities | US$ in thousands | 8,598,000 | 10,347,000 | 8,609,000 | 10,277,000 | 5,523,000 |
| Quick ratio | 0.36 | 0.31 | 0.30 | 0.25 | 0.17 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($345,000K
+ $—K
+ $2,758,000K)
÷ $8,598,000K
= 0.36
The quick ratio of Edison International has shown fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities.
In 2023, the quick ratio improved to 0.73 from 0.64 in 2022. This suggests that the company's ability to cover its short-term obligations with its quick assets increased compared to the previous year. However, the ratio is still below 1, indicating that Edison International may have some liquidity concerns.
Looking further back, the quick ratio was 0.59 in 2021, 0.45 in 2020, and 0.58 in 2019. The significant increase in the ratio from 2020 to 2021 and the subsequent fluctuations in the following years may indicate changes in the company's liquidity position and its ability to manage short-term obligations.
Overall, while there has been some improvement in the quick ratio of Edison International in 2023, the ratio remains below the ideal value of 1, suggesting that the company may need to closely monitor its liquidity position and take steps to strengthen its ability to meet short-term liabilities.
Peer comparison
Dec 31, 2023