Alliant Energy Corp (LNT)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,272,000 | 1,250,000 | 1,069,000 | 887,000 | 876,000 |
| Total current liabilities | US$ in thousands | 2,304,000 | 2,363,000 | 2,054,000 | 1,297,000 | 2,054,000 |
| Current ratio | 0.55 | 0.53 | 0.52 | 0.68 | 0.43 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,272,000K ÷ $2,304,000K
= 0.55
The current ratio of Alliant Energy Corp. has shown fluctuations over the past five years. The ratio indicates the company's ability to meet its short-term obligations with its current assets.
The current ratio has been consistently below 1 in the last five years, which may suggest a potential liquidity risk as the company may have difficulty meeting its short-term liabilities with its current assets alone. It is concerning that the ratio has been declining from 0.68 in 2020 to 0.55 in 2023.
A current ratio below 1 could indicate that Alliant Energy Corp. may be relying heavily on short-term liabilities to fund its operations, potentially leading to liquidity challenges. However, it is also important to consider the nature of the industry the company operates in, as different industries may have different typical current ratio ranges.
Further investigation into the composition of current assets and liabilities is recommended to gain a deeper understanding of the company's liquidity position. Monitoring this ratio over time and comparing it to industry benchmarks can provide valuable insights into the company's financial health and liquidity management.
Peer comparison
Dec 31, 2023