Exelon Corporation (EXC)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 0.87 1.09 1.03 1.03 0.82 0.85 0.95 0.96 0.69 0.81 0.91 0.94 0.87 0.94 0.89 0.96 0.98 1.09 1.13 1.06
Quick ratio 0.43 -0.02 0.56 0.54 0.39 0.41 0.43 0.48 0.38 0.45 0.50 0.65 0.39 0.49 0.45 0.51 0.42 0.55 0.58 0.58
Cash ratio 0.04 -0.51 0.11 0.09 0.05 0.03 0.05 0.06 0.04 0.05 0.10 0.29 0.07 0.20 0.13 0.16 0.05 0.17 0.19 0.12

Exelon Corporation's liquidity ratios indicate its ability to meet short-term obligations. The current ratio shows a decreasing trend, declining from 1.06 as of March 31, 2020, to 0.87 as of December 31, 2024, which may raise concerns about the company's short-term solvency. The quick ratio, which excludes inventory from current assets, also shows a decreasing trend, signaling potential challenges in meeting immediate obligations without relying on inventory.

Moreover, the cash ratio, representing the most stringent measure of liquidity, fluctuates over the period but generally remains low, indicating that Exelon may have limited liquid assets available to cover current liabilities without relying on other current assets.

Overall, the declining trend in these liquidity ratios suggests that Exelon Corporation may face challenges in maintaining sufficient liquid resources to meet its short-term financial obligations, warranting a closer examination of its liquidity management strategies.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 115.46 114.81 114.31 111.97 110.83 111.77 106.94 -88.83 -118.65 -52.99 -36.03 -17.61 83.67 7.08 -8.53 -15.26 -32.04 -26.74 -18.56 -3.02

Exelon Corporation's cash conversion cycle has shown significant fluctuations over the quarters from March 31, 2020, to December 31, 2024. The cash conversion cycle is a measure of how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

During the period, Exelon Corporation experienced negative cash conversion cycles in most quarters, indicating efficient working capital management. However, the company had a notable shift in its cash conversion cycle from negative days to positive days as of December 31, 2021, signaling a potential delay in converting investments into cash flows.

The cash conversion cycle peaked at 114.81 days on September 30, 2024, a substantial increase from its historical performance. This increase suggests that Exelon Corporation may be facing challenges in managing its working capital efficiently, potentially leading to increased liquidity risk.

Overall, the analysis of Exelon Corporation's cash conversion cycle highlights fluctuations in working capital efficiency over the quarters, with particular attention needed to address the increase in the cash conversion cycle observed in the most recent periods. Management may need to focus on optimizing inventory turnover, accounts receivable collection, and accounts payable management to improve the company's cash conversion cycle and overall liquidity position.