FirstEnergy Corporation (FE)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,568,000 | 2,415,000 | 3,237,000 | 3,714,000 | 2,444,000 |
| Total current liabilities | US$ in thousands | 5,386,000 | 3,958,000 | 4,416,000 | 5,004,000 | 4,862,000 |
| Current ratio | 0.48 | 0.61 | 0.73 | 0.74 | 0.50 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,568,000K ÷ $5,386,000K
= 0.48
The current ratio of Firstenergy Corp. has fluctuated over the past five years. As of December 31, 2023, the current ratio stands at 0.48, indicating that the company may be facing challenges in meeting its short-term obligations with its current assets. This represents a decline from the previous year when the current ratio was 0.61.
Compared to the ratios from 2021 and 2020, both of which were above 0.70, the current ratio has shown a significant decrease. The current ratio of 0.48 in 2023 is also lower than that of 2019, which was 0.50.
A current ratio below 1 suggests that the company may have difficulties in paying off its current liabilities with its current assets, which could potentially raise concerns about the firm's liquidity position. Further analysis of the company's liquidity management and working capital practices may be required to determine the underlying reasons for the declining trend in the current ratio.
Peer comparison
Dec 31, 2023