Nextera Energy Inc (NEE)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 0.47 0.41 0.49 0.51 0.55 0.50 0.53 0.53 0.51 0.46 0.53 0.49 0.53 0.47 0.48 0.52 0.47 0.57 0.61 0.71
Quick ratio 0.06 0.13 0.08 0.07 0.10 0.06 0.06 0.09 0.06 0.11 0.11 0.07 0.04 0.32 0.40 0.09 0.44 0.58 0.08 0.24
Cash ratio 0.06 0.13 0.08 0.07 0.10 0.06 0.06 0.09 0.06 0.11 0.11 0.07 0.04 0.32 0.40 0.09 0.44 0.58 0.08 0.24

Nextera Energy Inc's liquidity ratios have shown fluctuating trends over the past few years.

The current ratio, which measures the company's ability to meet its short-term obligations with its current assets, has been below 1 for most of the periods analyzed. This suggests that Nextera Energy Inc may have had difficulty covering its current liabilities with its current assets. However, the current ratio improved slightly in the most recent quarters, indicating some progress in managing short-term liquidity.

The quick ratio, a more stringent measure of liquidity that excludes inventories from current assets, also shows a similar pattern of volatility. The ratio has been quite low in many quarters, indicating a potential lack of ability to quickly cover immediate obligations without relying on inventory.

The cash ratio, which focuses solely on the ability to cover current liabilities with cash and cash equivalents, has also followed a similar trend as the quick ratio. While the company has maintained some level of cash reserves to cover short-term obligations, the ratio has not been consistently strong.

Overall, the liquidity ratios of Nextera Energy Inc suggest that the company may have faced challenges in efficiently managing its short-term liquidity needs. It is important for the company to continue monitoring and improving its liquidity position to ensure financial stability and meet its obligations effectively.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 71.55 72.59 68.96 77.53 75.83 72.52 64.98 63.97 65.26 63.18 63.21 65.15 67.39 78.55 74.27 77.96 77.96 69.65 66.47 63.79

The cash conversion cycle of Nextera Energy Inc has fluctuated over the years based on the provided data. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory into cash flows from sales. A shorter cash conversion cycle indicates efficient operations as the company is able to quickly convert its resources into revenue.

From March 31, 2020, to June 30, 2022, the cash conversion cycle showed some volatility, ranging from 63.79 days to 74.27 days. The cycle decreased slightly towards the end of this period.

In the later years, from September 30, 2022, to December 31, 2024, the cash conversion cycle fluctuated within a narrower range, from 63.18 days to 77.53 days. There were periods of increases and decreases, but overall, the cycle remained relatively stable.

Analyzing the trend, it appears that Nextera Energy Inc has managed to maintain a reasonably consistent cash conversion cycle, showing effective management of its working capital and operational efficiency. However, there may be room for improvements in optimizing the cycle further to enhance cash flows and overall financial performance.