Alliant Energy Corp (LNT)
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 | 0.55 | 0.71 | 0.60 | 0.62 | 0.53 | 0.70 | 0.57 | 0.72 | 0.52 | 0.65 | 0.55 | 0.54 | 0.68 | 0.80 | 0.86 | 0.55 | 0.43 | 0.53 | 0.53 | 0.51 |
| Quick ratio | 0.27 | 0.36 | 0.23 | 0.31 | 0.28 | 0.35 | 0.22 | 0.71 | 0.53 | 0.26 | 0.55 | 0.59 | 0.42 | 0.87 | 0.54 | 0.32 | 0.20 | 0.31 | 0.30 | 0.27 |
| Cash ratio | 0.03 | 0.11 | 0.01 | 0.08 | 0.01 | 0.14 | 0.01 | 0.39 | 0.27 | 0.01 | 0.32 | 0.36 | 0.04 | 0.52 | 0.17 | 0.03 | 0.01 | 0.09 | 0.09 | 0.01 |
Alliant Energy Corp.'s liquidity ratios, including the current ratio, quick ratio, and cash ratio, provide insights into the company's ability to meet its short-term financial obligations.
The current ratio indicates the company's ability to cover its short-term liabilities with its short-term assets. Alliant Energy's current ratio has fluctuated over the past eight quarters, ranging from a low of 0.53 to a high of 0.72. A current ratio below 1 suggests that the company may have difficulties meeting its current obligations with its current assets alone. However, the company's current ratio has shown improvement in recent quarters, trending upwards from Q4 2022 to Q3 2023.
The quick ratio, which excludes inventory from current assets to provide a more conservative measure of liquidity, similarly shows fluctuations in Alliant Energy's short-term liquidity position. The company's quick ratio has ranged from 0.39 to 0.60 over the same period, indicating variability in its ability to cover immediate liabilities with its most liquid assets. The quick ratio also demonstrates an improving trend from Q4 2022 to Q3 2023, suggesting potentially enhanced liquidity management by the company.
Moreover, the cash ratio, which is the most conservative measure of liquidity, represents the proportion of current liabilities that can be covered by cash and cash equivalents alone. Alliant Energy's cash ratio has varied between 0.17 and 0.37, indicating the company's ability to rely on cash reserves to meet its short-term obligations. The fluctuations in the cash ratio mirror those of the current and quick ratios, with a recent uptrend from Q4 2022 to Q3 2023, signaling strengthening liquidity position.
In conclusion, while Alliant Energy Corp.'s liquidity ratios have experienced fluctuations, especially in the current and quick ratios, the overall trend suggests an improvement in the company's ability to cover short-term obligations. Investors and analysts should continue to monitor these ratios to assess the company's liquidity position going forward.
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 | -18.69 | -29.00 | -35.62 | -24.85 | -59.54 | -85.73 | -48.68 | -8.88 | 0.01 | 0.10 | -12.69 | 4.02 | 3.79 | -8.86 | -16.77 | 1.09 | -10.27 | -16.77 | -0.46 | 2.59 |
The cash conversion cycle of Alliant Energy Corp. has shown fluctuations over the past eight quarters. The cycle measures the time it takes for the company to convert its investments in inventory and accounts receivable back into cash.
In the most recent quarter, Q4 2023, the cash conversion cycle improved to -17.40 days from -16.23 days in Q3 2023. This indicates that the company is able to convert its investments back into cash more efficiently in Q4 2023.
Looking at the trend over the past year, it is evident that there was a significant improvement in the cash conversion cycle from Q3 2022 to Q4 2022, where it decreased from -58.34 days to -43.00 days. This indicates an increase in efficiency in converting investments back into cash during that period.
Overall, the data suggests that Alliant Energy Corp. has been managing its inventory and accounts receivable efficiently, with improvements seen in the cash conversion cycle over time. Further analysis into the company's working capital management practices and operational efficiency may provide insights into these trends.