Eversource Energy (ES)

Quick ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash	US$ in thousands	53,900	78,800	42,200	36,000	374,600	485,700	156,676	164,589	66,800	218,129	368,011	175,604	264,950	730,000	176,920	133,689	15,400	151,880	167,163	108,372
Short-term investments	US$ in thousands	3,300	-2,721,210	3,100	19,600	20,000	23,300	26,400	31,500	40,200	39,200	39,900	39,200	40,900	36,800	41,600	34,800	45,700	43,400	45,200	49,600
Receivables	US$ in thousands	1,431,530	1,430,180	1,332,310	1,660,080	1,517,140	1,453,780	1,345,900	1,468,560	1,226,070	1,288,760	1,224,090	1,290,200	1,195,920	1,113,500	996,290	1,018,940	989,383	993,396	964,314	1,140,350
Total current liabilities	US$ in thousands	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	3,605,560	3,748,910	3,512,120	4,559,360
Quick ratio		0.23	-0.17	0.24	0.27	0.28	0.36	0.36	0.30	0.23	0.36	0.32	0.27	0.31	0.52	0.37	0.35	0.29	0.32	0.34	0.28

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 fluctuated over the past eight quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities.

In Q4 2023, the quick ratio was 0.59, showing a slight improvement from the previous quarter but still below the ideal 1. This suggests that Eversource Energy may face challenges in covering its immediate obligations with its liquid assets.

Compared to the same quarter in the previous year, there has been a decline in the quick ratio from 0.66 in Q4 2022 to 0.59 in Q4 2023. This downward trend indicates a potential weakening of the company's liquidity position over the past year.

Although the quick ratio has shown some fluctuations, it is important for Eversource Energy to closely monitor and manage its liquidity position to ensure it can meet its short-term obligations effectively. Further analysis of the company's cash flow and working capital management may provide insights into improving its liquidity position in the future.