Exelon Corporation (EXC)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 445,000 | 407,000 | 672,000 | 432,000 | 587,000 |
| Short-term investments | US$ in thousands | — | — | 510,000 | 231,000 | — |
| Receivables | US$ in thousands | 3,372,000 | 3,579,000 | 5,126,000 | 4,758,000 | 4,793,000 |
| Total current liabilities | US$ in thousands | 9,591,000 | 10,611,000 | 16,111,000 | 12,771,000 | 14,185,000 |
| Quick ratio | 0.40 | 0.38 | 0.39 | 0.42 | 0.38 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($445,000K
+ $—K
+ $3,372,000K)
÷ $9,591,000K
= 0.40
The quick ratio of Exelon Corp. has fluctuated over the past five years, ranging from 0.57 to 0.74. 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 without relying on selling inventory.
In 2023, the quick ratio was 0.68, showing a slight improvement compared to the previous year's ratio of 0.57. The ratio of 0.68 implies that for every dollar of current liabilities, Exelon had $0.68 of liquid assets available to cover those obligations. This indicates a moderate liquidity position.
However, when looking at the trend over the past five years, the quick ratio seems to be somewhat inconsistent, showing fluctuations without a clear upward or downward trend. This variability could be a result of changes in Exelon's business operations, such as fluctuations in inventory levels or changes in cash management strategies.
Overall, it is important for Exelon to closely monitor its quick ratio to ensure it maintains an adequate level of liquidity to meet its short-term obligations without relying too heavily on selling inventory or other less liquid assets.
Peer comparison
Dec 31, 2023