FirstEnergy Corporation (FE)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 137,000 | 160,000 | 1,462,000 | 1,734,000 | 627,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 0 |
| Total current liabilities | US$ in thousands | 5,386,000 | 3,958,000 | 4,416,000 | 5,004,000 | 4,862,000 |
| Cash ratio | 0.03 | 0.04 | 0.33 | 0.35 | 0.13 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($137,000K
+ $—K)
÷ $5,386,000K
= 0.03
The cash ratio of Firstenergy Corp. has exhibited fluctuations over the past five years. The ratio was at its highest in December 2021 at 0.37, indicating that the company had $0.37 in cash for every $1 of current liabilities. This level decreased slightly to 0.38 in December 2020.
However, there was a significant decline in the cash ratio to 0.16 in December 2019, showing a notable drop in the company's liquidity position. The ratio then slightly improved to 0.10 in December 2022, but further declined to 0.08 by the end of December 2023.
Overall, the decreasing trend in the cash ratio over the past two years may raise concerns about Firstenergy Corp.'s ability to meet its short-term obligations with its available cash reserves. Further analysis and consideration of other liquidity ratios would provide a more comprehensive assessment of the company's liquidity position.
Peer comparison
Dec 31, 2023