Evergy Inc. Common Stock (EVRG)

Liquidity ratios

	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
Current ratio	0.51	0.39	0.46	0.52	0.53	0.52	0.50	0.51	0.55	0.67	0.64	0.62	0.69	0.91	0.86	0.72	0.63	0.73	0.44	0.58
Quick ratio	0.13	0.11	0.13	0.11	0.16	0.17	0.16	0.11	0.14	0.23	0.34	0.36	0.36	0.53	0.41	0.31	0.11	0.15	0.11	0.09
Cash ratio	0.01	0.01	0.01	0.01	0.01	0.01	0.01	0.01	0.01	0.01	0.09	0.21	0.14	0.26	0.08	0.13	0.01	0.02	0.03	0.04

Evergy Inc's liquidity ratios have shown some fluctuations over the past eight quarters.

The current ratio, which indicates the company's ability to cover short-term liabilities with current assets, has been consistently below 1, suggesting potential difficulties in meeting its short-term obligations. The ratio has ranged from a low of 0.39 in Q3 2023 to a high of 0.53 in Q4 2022. This indicates a declining trend in Evergy Inc's ability to cover its short-term liabilities with its current assets.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also been below 1 in all the periods, indicating a potentially limited ability to pay off current liabilities without relying on selling inventory. The quick ratio has varied from 0.16 in Q3 2023 to 0.33 in Q2 and Q3 2022. This indicates some level of improvement in Evergy Inc's ability to meet short-term obligations using its most liquid assets.

The cash ratio, which is the most conservative measure of liquidity, has also generally been low, ranging from 0.09 in Q3 2023 to 0.27 in Q1 2022. This indicates Evergy Inc's ability to cover its current liabilities solely with cash and cash equivalents has been weak.

Overall, Evergy Inc's liquidity position, as reflected in its current, quick, and cash ratios, has been concerning, with consistent values below 1 for the current and quick ratios indicating potential liquidity challenges. The company may need to carefully manage its working capital and consider strategies to improve its liquidity position to meet its short-term obligations effectively.

Additional liquidity measure

		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 conversion cycle	days	66.29	110.27	119.76	113.17	51.66	95.04	83.86	82.19	6.86	68.65	87.69	76.79	-4.80	84.48	103.38	88.85	2.63	68.00	89.73	71.84

The cash conversion cycle of Evergy Inc has been fluctuating over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 56.68 days, indicating that it takes approximately 56.68 days for Evergy to convert its investments in inventory and other resources into cash from sales. This is a significant improvement from the previous quarter, where the cash conversion cycle was 94.47 days.

The trend in the cash conversion cycle over the past year shows that Evergy Inc has experienced some volatility in its working capital management. The company's cash conversion cycle in Q1 2023 was 82.71 days, which was also an improvement from the previous quarter. However, Q2 and Q3 of 2023 saw an increase in the cash conversion cycle, reaching 93.11 days and 94.47 days, respectively.

Comparing the current cash conversion cycle with the same quarter in the previous year, Q4 2022 had a cash conversion cycle of 34.67 days, suggesting that Evergy Inc took longer in Q4 2023 to convert its resources into cash compared to the same period in 2022.

Overall, Evergy Inc should focus on optimizing its cash conversion cycle to ensure efficient management of its working capital and improve cash flow and liquidity levels.