Evergy, Inc. (EVRG)

Evergy, Inc.'s liquidity ratios show a concerning trend over the years. The current ratio has decreased from 0.69 in 2020 to 0.07 in 2024, which indicates a declining ability to cover short-term liabilities with current assets. Similarly, the quick ratio and cash ratio have deteriorated significantly, with values dropping to close to zero by the end of the period.

Overall, these decreasing liquidity ratios suggest that Evergy, Inc. may face challenges in meeting its short-term obligations as its ability to convert current assets into cash quickly has weakened. It may indicate potential liquidity issues that could impact the company's financial stability and operational efficiency.

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Additional liquidity measure

The cash conversion cycle of Evergy, Inc. has shown some fluctuation over the years based on the data provided. In 2020, the company's cash conversion cycle was 72.92 days, which decreased slightly to 70.00 days in 2021. However, there was an increase in the cash conversion cycle to 76.05 days in 2022, followed by a slight decrease to 74.18 days in 2023.

Notably, there was a significant spike in the cash conversion cycle in 2024, rising to 329.14 days. This substantial increase may indicate potential issues with the company's management of accounts receivable, inventory, and accounts payable, leading to a much longer cash conversion cycle.

Overall, Evergy, Inc. should analyze the underlying factors contributing to this drastic increase in the cash conversion cycle in 2024 to address any inefficiencies in its working capital management and strive to optimize its cash conversion cycle in the future.