FirstEnergy Corporation (FE)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	137,000	160,000	1,462,000	1,734,000	627,000
Short-term investments	US$ in thousands	—	—	—	—	0
Receivables	US$ in thousands	1,318,000	1,318,000	1,033,000	1,203,000	1,091,000
Total current liabilities	US$ in thousands	5,386,000	3,958,000	4,416,000	5,004,000	4,862,000
Quick ratio		0.27	0.37	0.56	0.59	0.35

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($137,000K + $—K + $1,318,000K) ÷ $5,386,000K
= 0.27

The quick ratio of Firstenergy Corp. has exhibited varying levels over the past five years. In 2023, the quick ratio stands at 0.37, indicating a decline from the previous year's quick ratio of 0.49. This downward trend suggests that the company may have struggled to meet its short-term obligations using its most liquid assets in the most recent fiscal year.

Comparing the current quick ratio to the ratios from 2021 and 2020, which were 0.66 and 0.67 respectively, it is evident that there has been a significant decrease in liquidity levels over the past two years. This reduction may raise concerns about the company's ability to cover its current liabilities with its quick assets in a timely manner.

Furthermore, when looking back to 2019, where the quick ratio was 0.43, it is notable that the ratio in 2023 is still higher. However, the gradual decline over the years indicates a potential deterioration in the company's liquidity position, which could potentially impact its financial stability and ability to navigate short-term financial challenges effectively.

Overall, based on the trend observed in the quick ratio figures, it is advisable for stakeholders to monitor Firstenergy Corp.'s liquidity closely and assess management's strategies to improve this aspect of the company's financial performance.