Eversource Energy (ES)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 53,900 | 374,600 | 66,800 | 264,950 | 15,400 |
| Short-term investments | US$ in thousands | 3,300 | 20,000 | 40,200 | 40,900 | 45,700 |
| Receivables | US$ in thousands | 1,431,530 | 1,517,140 | 1,226,070 | 1,195,920 | 989,383 |
| Total current liabilities | US$ in thousands | 6,341,400 | 6,799,280 | 5,847,040 | 4,915,010 | 3,605,560 |
| Quick ratio | 0.23 | 0.28 | 0.23 | 0.31 | 0.29 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($53,900K
+ $3,300K
+ $1,431,530K)
÷ $6,341,400K
= 0.23
The quick ratio of Eversource Energy has displayed some fluctuations over the past five years, ranging from 0.51 to 0.60. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
In 2023, the quick ratio of 0.59 indicates that Eversource Energy had $0.59 in liquid assets available to cover each $1 of its current liabilities. This suggests a slight improvement compared to the previous year, when the quick ratio was 0.57.
Although the quick ratio has varied, it generally remained above 0.50, indicating that Eversource Energy typically had enough liquid assets to meet its short-term financial obligations during the period under review. However, it is important to consider this ratio in conjunction with other liquidity and financial health metrics to gain a more comprehensive understanding of the company's overall financial strength and stability.
Peer comparison
Dec 31, 2023