FirstEnergy Corporation (FE)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,568,000 | 2,520,000 | 2,485,000 | 2,507,000 | 2,415,000 | 2,312,000 | 2,539,000 | 2,250,000 | 3,237,000 | 2,532,000 | 3,196,000 | 3,188,000 | 3,714,000 | 2,162,000 | 1,986,000 | 2,003,000 | 2,444,000 | 2,616,000 | 2,386,000 | 2,314,000 |
| 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 |
| Current ratio | 0.48 | 0.53 | 0.60 | 0.68 | 0.61 | 0.66 | 0.75 | 0.52 | 0.73 | 0.62 | 0.83 | 0.69 | 0.74 | 0.70 | 0.78 | 0.54 | 0.50 | 0.62 | 0.60 | 0.54 |
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 eight quarters, ranging from a low of 0.48 in Q4 2023 to a high of 0.75 in Q2 2022. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A ratio below 1 indicates potential liquidity issues, as current liabilities exceed current assets.
The declining trend in the current ratio from Q2 2022 to Q4 2023 suggests that Firstenergy Corp. may be facing challenges in managing its short-term financial obligations. The ratio peaked in Q2 2022 at 0.75, indicating a stronger ability to cover current liabilities with current assets. However, the subsequent decrease in Q3 and Q4 2022, as well as in the following quarters, raises concerns about the company's short-term financial health.
A low current ratio may signal difficulties in paying off debts and meeting day-to-day expenses. Firstenergy Corp. should closely monitor its current assets and liabilities and consider implementing strategies to improve its liquidity position. Moreover, investors and stakeholders should pay attention to this trend as it may impact the company's financial stability and overall performance in the future.
Peer comparison
Dec 31, 2023