Eversource Energy (ES)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	5,076,070	4,247,990	4,223,200	3,270,120	3,130,140
Total current liabilities	US$ in thousands	6,720,960	6,341,400	6,799,280	5,847,040	4,915,010
Current ratio		0.76	0.67	0.62	0.56	0.64

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $5,076,070K ÷ $6,720,960K
= 0.76

Based on the provided data, Eversource Energy's current ratio has shown some fluctuations over the years. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A higher current ratio is generally considered better as it indicates a stronger ability to meet short-term obligations.

Eversource Energy's current ratio was 0.64 as of December 31, 2020, showing that the company's current assets were insufficient to cover its short-term liabilities at that point in time. However, the ratio improved slightly to 0.56 by December 31, 2021, but it was still below the ideal level.

By December 31, 2022, the current ratio further increased to 0.62, indicating a better ability to meet short-term obligations compared to the previous year. The ratio continued to improve and reached 0.67 by December 31, 2023, showing a positive trend in the company's liquidity position.

As of December 31, 2024, Eversource Energy's current ratio stood at 0.76, which reflects a significant improvement in the company's ability to cover short-term obligations with its current assets. It suggests that Eversource Energy may be managing its current assets more effectively or reducing its short-term liabilities.

Overall, while there have been fluctuations, the increasing trend in the current ratio over the years indicates a strengthening liquidity position for Eversource Energy. However, it is important for the company to maintain a current ratio above 1 to ensure it has an adequate cushion to meet its short-term obligations.