FirstEnergy Corporation (FE)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 0.27 | 0.30 | 0.33 | 0.39 | 0.37 | 0.41 | 0.14 | 0.06 | 0.56 | 0.14 | 0.32 | 0.28 | 0.59 | 0.37 | 0.05 | 0.04 | 0.13 | 0.17 | 0.11 | 0.04 |
| 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 |
Firstenergy Corp.'s liquidity ratios indicate how well the company can meet its short-term obligations.
The current ratio has been declining over the past eight quarters, from 0.68 in Q1 2023 to 0.48 in Q4 2023, suggesting a potential deterioration in the company's ability to cover current liabilities with current assets. This decreasing trend may raise concerns about the company's short-term financial health and ability to manage its obligations.
Similarly, the quick ratio has also shown a decline from 0.55 in Q1 2023 to 0.37 in Q4 2023, indicating a decrease in the company's ability to pay off its current liabilities without relying on inventory. This downward trend could signal potential liquidity challenges for Firstenergy Corp.
The cash ratio, which measures the company's ability to cover current liabilities with cash and cash equivalents, has seen fluctuations but generally remained low, ranging from 0.08 to 0.14 over the past eight quarters. This implies that the company may have limited cash resources to meet its short-term obligations, which could pose liquidity risks.
Overall, based on the liquidity ratios analyzed, Firstenergy Corp. may be facing challenges in maintaining adequate liquidity levels to meet its short-term financial obligations. Investors and stakeholders should closely monitor these ratios for any further signs of deterioration in the company's liquidity position.
Additional liquidity measure
| 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 conversion cycle | days | -142.37 | -122.77 | -116.29 | -115.53 | -170.79 | -122.50 | -190.64 | -186.03 | -123.81 | -146.70 | -215.82 | -137.60 | -84.74 | -146.05 | -142.60 | -145.48 | -147.53 | -128.34 | -106.36 | -90.42 |
The cash conversion cycle of Firstenergy Corp. has shown fluctuations over the past eight quarters. In Q4 2023, the company improved its cash conversion cycle to -21.85 days compared to the previous quarter of -13.91 days in Q3 2023. This indicates that the company took less time to convert its investments in inventory into cash during Q4 2023.
Overall, the trend in the cash conversion cycle has been improving since Q2 2022 when it was at its highest at -38.67 days. Subsequently, the company managed to reduce this cycle consistently, with occasional fluctuations, reaching the lowest point in Q4 2023.
The negative values of the cash conversion cycle indicate that Firstenergy Corp. has been able to generate cash from its operations before having to pay its suppliers. This efficient management of working capital is beneficial as it allows the company to operate with a shorter cash conversion cycle, indicating better liquidity and financial health.
Overall, the trend in the cash conversion cycle of Firstenergy Corp. shows a positive direction, signaling effective management of working capital and improved operational efficiency.