FirstEnergy Corporation (FE)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 111,000 137,000 160,000 1,462,000 1,734,000
Short-term investments US$ in thousands
Receivables US$ in thousands
Total current liabilities US$ in thousands 4,997,000 5,386,000 3,958,000 4,416,000 5,004,000
Quick ratio 0.02 0.03 0.04 0.33 0.35

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($111,000K + $—K + $—K) ÷ $4,997,000K
= 0.02

The quick ratio measures a company's ability to meet its short-term liabilities with its most liquid assets. FirstEnergy Corporation's quick ratio has exhibited a declining trend over the years, dropping from 0.35 in December 2020 to 0.02 by December 2024. This indicates that the company may be facing challenges in meeting its short-term obligations with its quick assets such as cash, marketable securities, and accounts receivable. A quick ratio below 1 suggests potential liquidity issues and may raise concerns about the company's ability to cover its immediate financial commitments. Further analysis of the company's cash flows and working capital management practices would be warranted to assess its overall liquidity position.