Eversource Energy (ES)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,247,990 | 4,223,200 | 3,270,120 | 3,130,140 | 2,414,540 |
| Total current liabilities | US$ in thousands | 6,341,400 | 6,799,280 | 5,847,040 | 4,915,010 | 3,605,560 |
| Current ratio | 0.67 | 0.62 | 0.56 | 0.64 | 0.67 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,247,990K ÷ $6,341,400K
= 0.67
The current ratio, a key liquidity measure, for Eversource Energy has fluctuated over the past five years. It stood at 0.67 as of December 31, 2023, reflecting an increase from the previous year's ratio of 0.62. However, the current ratio still remains below 1, indicating that the company may have difficulties meeting its short-term obligations with its current assets alone.
Looking back at the trend over the period from 2019 to 2023, the current ratio has shown some variability, ranging from 0.56 in 2021 to 0.67 in both 2019 and 2023. This suggests that Eversource Energy has had varying levels of liquidity over the years, with a notable dip in 2021.
In conclusion, while the current ratio for Eversource Energy has improved slightly in the most recent year, it still indicates a relatively weak liquidity position. It would be advisable for the company to continue monitoring and managing its short-term assets and liabilities effectively to ensure it can meet its financial obligations in a timely manner.
Peer comparison
Dec 31, 2023