Eversource Energy (ES)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 6,720,960 | 6,341,400 | 6,799,280 | 5,847,040 | 4,915,010 |
| Quick ratio | 0.03 | 0.01 | 0.00 | 0.01 | 0.25 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($26,656K
+ $168,163K
+ $—K)
÷ $6,720,960K
= 0.03
To analyze the quick ratio of Eversource Energy based on the provided data, we observe a significant downward trend over the five-year period from December 31, 2020, to December 31, 2024. The quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, has plummeted from 0.25 in 2020 to 0.03 in 2024.
This decreasing trend indicates a potential worsening of the company's liquidity position and its ability to cover immediate financial obligations without relying on selling inventory. A quick ratio below 1.0 typically suggests that a company may have difficulty meeting its short-term liabilities.
The notable decline from 2020 to 2024 raises concerns about Eversource Energy's liquidity management and prompts further investigation into its current assets, especially cash and equivalents, and its current liabilities. Investors and stakeholders should closely monitor these liquidity metrics to assess the company's financial health and risk levels in the short term.
Peer comparison
Dec 31, 2024