Edison International (EIX)
Quick 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 | 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 | — | — | — | — | — | — |
| Receivables | US$ in thousands | 2,758,000 | 3,292,000 | 2,473,000 | 2,217,000 | 2,336,000 | 3,557,000 | 2,643,000 | 2,055,000 | 2,192,000 | 2,734,000 | 2,177,000 | 2,369,000 | 2,427,000 | 3,022,000 | 1,673,000 | 1,335,000 | 788,000 | 1,099,000 | 795,000 | 716,000 |
| 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 |
| 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 |
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 displayed some fluctuations over the past eight quarters, as shown in the table. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of less than 1 indicates that the company may have difficulty meeting its short-term liabilities, while a ratio greater than 1 suggests that the company is in a better position to cover its short-term obligations.
In Q4 2023, the quick ratio was 0.73, indicating that for every dollar of current liabilities, the company had $0.73 of quick assets available to cover it. This ratio increased slightly from the previous quarter but remained below 1, suggesting that Edison International may face some challenges in meeting its short-term obligations.
Over the past year, the quick ratio has generally improved from Q1 2022 to Q2 2023, reaching its highest point of 0.80 in Q1 2023. However, it dipped in Q4 2022 before recovering in the most recent quarter. The overall trend indicates some variability in the company's ability to cover its short-term liabilities with its liquid assets.
It is important for Edison International to closely monitor and manage its quick ratio to ensure it maintains sufficient liquidity to meet its short-term obligations. Further analysis of the company's cash management practices and asset composition may provide insights into the factors driving the fluctuations in the quick ratio.
Peer comparison
Dec 31, 2023