Exelon Corporation (EXC)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 357,000 | 445,000 | 407,000 | 672,000 | 432,000 |
| Short-term investments | US$ in thousands | — | 12,000 | — | 510,000 | 231,000 |
| Receivables | US$ in thousands | 3,754,000 | 3,372,000 | 3,579,000 | 5,126,000 | 4,758,000 |
| Total current liabilities | US$ in thousands | 9,611,000 | 9,901,000 | 10,611,000 | 16,111,000 | 12,771,000 |
| Quick ratio | 0.43 | 0.39 | 0.38 | 0.39 | 0.42 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($357,000K
+ $—K
+ $3,754,000K)
÷ $9,611,000K
= 0.43
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. In the case of Exelon Corporation, the quick ratio decreased from 0.42 on December 31, 2020, to 0.39 on December 31, 2021. This downward trend continued as the quick ratio dropped to 0.38 on December 31, 2022, before slightly improving to 0.39 on December 31, 2023, and further increasing to 0.43 on December 31, 2024.
A quick ratio below 1.0 indicates that Exelon may have difficulty meeting its short-term obligations with its liquid assets alone. The decreasing trend observed until 2023 might raise concerns about the company's liquidity position. However, the improvement in the quick ratio in 2024 suggests a positive development in Exelon's ability to cover its short-term liabilities with its quick assets.
It is essential for stakeholders and investors to monitor Exelon's quick ratio over time to assess the company's liquidity risk and financial health, as fluctuations in this ratio can provide insights into the company's ability to manage its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024