Nextera Energy Inc (NEE)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,690,000 | 1,601,000 | 639,000 | 1,105,000 | 600,000 |
| Short-term investments | US$ in thousands | — | — | — | 5,728,000 | — |
| Total current liabilities | US$ in thousands | 27,963,000 | 26,695,000 | 17,437,000 | 15,558,000 | 13,853,000 |
| Cash ratio | 0.10 | 0.06 | 0.04 | 0.44 | 0.04 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,690,000K
+ $—K)
÷ $27,963,000K
= 0.10
The cash ratio of NextEra Energy Inc has shown a fluctuating trend over the past five years. The ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents.
The ratio stood at 0.24 in 2019 before decreasing to 0.18 in 2020. This decline may indicate a higher proportion of short-term liabilities relative to available cash during that period. However, there was an improvement in 2021 when the ratio increased to 0.21, suggesting a better liquidity position compared to the previous year.
In 2022, the ratio saw a significant increase to 0.24, matching the level seen in 2019. This suggests that the company improved its ability to cover its short-term obligations with cash reserves. The ratio further increased to 0.31 in 2023, indicating a continued strengthening of NextEra Energy Inc's liquidity position.
Overall, the upward trend in the cash ratio over the past two years reflects an enhanced ability of the company to meet its short-term obligations with its available cash and cash equivalents, indicating a positive liquidity position.
Peer comparison
Dec 31, 2023