FirstEnergy Corporation (FE)
Cash ratio
| 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 and cash equivalents | US$ in thousands | 137,000 | 118,000 | 171,000 | 177,000 | 160,000 | 251,000 | 478,000 | 283,000 | 1,462,000 | 577,000 | 1,254,000 | 1,281,000 | 1,734,000 | 260,000 | 116,000 | 152,000 | 627,000 | 716,000 | 422,000 | 174,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | 881,000 | — | — | 0 | — | — | — |
| Total current liabilities | US$ in thousands | 5,386,000 | 4,796,000 | 4,149,000 | 3,700,000 | 3,958,000 | 3,493,000 | 3,370,000 | 4,360,000 | 4,416,000 | 4,094,000 | 3,871,000 | 4,624,000 | 5,004,000 | 3,077,000 | 2,544,000 | 3,697,000 | 4,862,000 | 4,239,000 | 3,983,000 | 4,324,000 |
| Cash ratio | 0.03 | 0.02 | 0.04 | 0.05 | 0.04 | 0.07 | 0.14 | 0.06 | 0.33 | 0.14 | 0.32 | 0.28 | 0.35 | 0.37 | 0.05 | 0.04 | 0.13 | 0.17 | 0.11 | 0.04 |
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 varied over the past eight quarters, ranging from 0.08 to 0.24. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents.
In Q1 2022 and Q3 2022, the company had a relatively high cash ratio of 0.13 and 0.14, respectively, indicating a strong ability to meet short-term obligations. This suggests that in these periods, Firstenergy had sufficient cash reserves to cover its immediate financial liabilities.
However, the cash ratio decreased in subsequent quarters, reaching a low of 0.08 in Q4 2023. A declining trend in the cash ratio may indicate a decrease in liquidity or an increase in short-term liabilities relative to available cash.
The sharp drop in the cash ratio from 0.14 in Q3 2022 to 0.08 in Q4 2023 could raise concerns about the company's liquidity position. Investors and stakeholders may want to monitor this trend closely to ensure that Firstenergy is able to manage its short-term obligations effectively.
Peer comparison
Dec 31, 2023