Alliant Energy Corp (LNT)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 62,000 | 20,000 | 39,000 | 54,000 | 16,000 |
| Short-term investments | US$ in thousands | — | — | 517,000 | 485 | 300 |
| Receivables | US$ in thousands | 568,000 | 631,000 | 531,000 | 494,000 | 402,100 |
| Total current liabilities | US$ in thousands | 2,304,000 | 2,363,000 | 2,054,000 | 1,297,000 | 2,054,000 |
| Quick ratio | 0.27 | 0.28 | 0.53 | 0.42 | 0.20 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($62,000K
+ $—K
+ $568,000K)
÷ $2,304,000K
= 0.27
The quick ratio measures a company's ability to cover its short-term liabilities with its most liquid assets. For Alliant Energy Corp., the trend in the quick ratio over the past five years shows some fluctuations. In 2023, the quick ratio was 0.40, slightly higher compared to the previous year at 0.39. Despite the improvement, the quick ratio remains relatively low, indicating that the company may have difficulty meeting its short-term obligations with its readily available assets.
Looking back further, in 2021 and 2020, the quick ratio was 0.40 and 0.52, respectively. The increase in 2020 suggests improved liquidity and a better ability to meet short-term obligations. However, this improvement was not sustained as seen in the subsequent years.
On the other hand, in 2019, the quick ratio was 0.32, which was the lowest among the years presented. This indicates a potential liquidity issue that existed within the company that year.
Overall, the fluctuation in Alliant Energy Corp.'s quick ratio over the years suggests varying levels of liquidity and the need for the company to carefully manage its current assets to ensure it can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023