Eversource Energy (ES)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	26,656	53,873	374,603	66,773	106,599
Short-term investments	US$ in thousands	168,163	31,000	-366,508	—	1,107,140
Total current liabilities	US$ in thousands	6,720,960	6,341,400	6,799,280	5,847,040	4,915,010
Cash ratio		0.03	0.01	0.00	0.01	0.25

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($26,656K + $168,163K) ÷ $6,720,960K
= 0.03

The cash ratio of Eversource Energy has shown a decreasing trend over the years. As of December 31, 2020, the cash ratio was 0.25, indicating that the company had $0.25 in cash and cash equivalents for every $1 of current liabilities. However, by December 31, 2022, the cash ratio had decreased to 0.00, suggesting a significant decrease in the company's ability to cover its short-term liabilities with its available cash.

Although there was a slight improvement in the cash ratio to 0.03 by December 31, 2024, it remains relatively low compared to previous years. This may indicate that Eversource Energy has limited cash reserves to meet its short-term obligations, which could potentially pose liquidity challenges.

Overall, a declining cash ratio trend for Eversource Energy raises concerns about the company's short-term liquidity position and highlights the importance of closely monitoring its cash management strategies and financial health.