Eversource Energy (ES)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 26,656 | 97,888 | 33,381 | 259,213 | 53,873 | 78,813 | 42,182 | 35,975 | 374,603 | 485,716 | 29,540 | 46,175 | 66,773 | 88,204 | 217,397 | 34,112 | 106,599 | 729,993 | 64,890 | 47,425 |
| Short-term investments | US$ in thousands | — | 97,790,100 | — | — | — | -2,721,210 | 2,224,720 | — | -366,508 | — | — | — | — | — | 1,205,300 | 1,139,640 | 1,107,140 | 903,177 | — | — |
| Total current liabilities | US$ in thousands | 6,720,960 | 5,619,820 | 6,253,150 | 6,367,590 | 6,341,400 | 7,119,640 | 5,794,580 | 6,405,040 | 6,799,280 | 5,487,160 | 4,260,540 | 5,601,310 | 5,847,040 | 4,258,080 | 5,104,570 | 5,538,940 | 4,915,010 | 3,634,070 | 3,326,060 | 3,395,630 |
| Cash ratio | 0.00 | 17.42 | 0.01 | 0.04 | 0.01 | -0.37 | 0.39 | 0.01 | 0.00 | 0.09 | 0.01 | 0.01 | 0.01 | 0.02 | 0.28 | 0.21 | 0.25 | 0.45 | 0.02 | 0.01 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($26,656K
+ $—K)
÷ $6,720,960K
= 0.00
The cash ratio of Eversource Energy has shown significant fluctuations over the past few years, ranging from extremely low levels to exceptionally high levels. The ratio started at a very low point of 0.01 in March 2020 and gradually increased to 0.45 by September 2020, indicating a substantial improvement in the company's ability to cover its short-term liabilities with cash on hand.
However, there was a noticeable drop in the cash ratio in the subsequent quarters, reaching as low as 0.01 by March 2021. The ratio then saw some improvement, reaching a peak of 17.42 in September 2024, which is an unusually high level and may raise questions about the efficiency of cash management and utilization within the company.
It is important to note that a cash ratio of 17.42 means that the company had significantly more cash on hand compared to its short-term liabilities during that period.
The negative cash ratio of -0.37 in September 2023 is an anomaly and suggests that the company's cash on hand was insufficient to cover its short-term liabilities at that particular point in time.
Overall, the fluctuating trends in Eversource Energy's cash ratio highlight the volatility in the company's cash position and its ability to meet short-term obligations with available cash reserves. Regular monitoring and analysis of the cash ratio will be crucial in assessing the company's liquidity position and financial health.
Peer comparison
Dec 31, 2024