FirstEnergy Corporation (FE)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 137,000 | 118,000 | 171,000 | 177,000 | 160,000 | 251,000 | 478,000 | 283,000 | 1,462,000 | 577,000 | 1,254,000 | 1,281,000 | 1,734,000 | 260,000 | 116,000 | 152,000 | 627,000 | 716,000 | 422,000 | 174,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | 881,000 | — | — | 0 | — | — | — |
| Receivables | US$ in thousands | 1,318,000 | 1,302,000 | 1,186,000 | 1,259,000 | 1,318,000 | 1,182,000 | — | — | 1,033,000 | — | — | — | 1,203,000 | — | — | — | — | — | — | — |
| 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 |
| 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 |
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 shown a declining trend over the past eight quarters. It decreased from 0.49 in Q4 2022 to 0.37 in Q4 2023. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets, excluding inventory.
A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities with its current liquid assets. As the quick ratio has been consistently below 1 for the past eight quarters, it raises concerns about Firstenergy Corp.'s liquidity and ability to cover its short-term obligations.
The decreasing trend in the quick ratio could be a red flag for potential investors and creditors, suggesting that the company may be facing challenges in managing its short-term financial obligations. It may indicate a need for Firstenergy Corp. to improve its cash management practices or consider alternative funding sources in order to enhance its liquidity position.
Peer comparison
Dec 31, 2023