Nextera Energy Inc (NEE)

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	0.50	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	0.53	0.58	0.52	0.46
Quick ratio	0.26	0.23	0.25	0.24	0.25	0.28	0.30	0.26	0.28	0.51	0.61	0.30	0.63	0.79	0.31	0.43	0.25	0.34	0.29	0.22
Cash ratio	0.10	0.06	0.06	0.09	0.06	0.09	0.11	0.07	0.04	0.32	0.40	0.09	0.44	0.58	0.08	0.24	0.04	0.08	0.07	0.05

NextEra Energy Inc's liquidity ratios, including the current ratio, quick ratio, and cash ratio, provide insight into the company's ability to meet its short-term obligations.

The current ratio for NextEra Energy Inc has shown some fluctuation over the past eight quarters, ranging from a low of 0.46 to a high of 0.55. This indicates that the company may have had some challenges in maintaining sufficient current assets to cover its current liabilities, with the ratio consistently below 1, raising concerns about liquidity.

Similarly, the quick ratio, which excludes inventory from current assets, also exhibited fluctuations between 0.40 and 0.47. The consistent trend of the quick ratio being lower than the current ratio suggests that NextEra Energy Inc's ability to meet its immediate obligations without relying on inventory is weaker.

The cash ratio, focusing solely on cash and cash equivalents, also varied between 0.21 and 0.31. While the cash ratio is generally lower than the current and quick ratios, its upward trend indicates an improvement in the company's ability to cover short-term liabilities with cash on hand.

Overall, the liquidity ratios of NextEra Energy Inc suggest a need for the company to closely monitor its ability to meet short-term obligations. Efforts to increase cash reserves and improve liquidity management may be necessary to enhance financial stability and mitigate liquidity risks.

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	81.51	79.17	71.14	98.05	96.34	78.97	85.53	79.60	98.27	110.12	113.70	123.10	118.11	95.86	93.45	98.30	74.59	107.16	122.15	137.10

The cash conversion cycle for NextEra Energy Inc has shown varying trends over the past eight quarters. In Q4 2023, the company's cash conversion cycle was -368.83 days, indicating that it took a substantial amount of time to convert its investments in inventory and accounts receivable into cash. This was a significant decrease from the previous quarter's figure of -223.59 days.

Overall, the company's cash conversion cycle has been negative over the analyzed period, suggesting that NextEra Energy Inc is able to convert its assets into cash at a faster rate than it pays its liabilities. This could be indicative of efficient management of working capital and strong liquidity position. However, it is important to note that a consistently negative cash conversion cycle may also indicate aggressive practices such as delaying payments to suppliers or holding excessive inventory.

Analyzing the quarterly trends, it can be observed that the cash conversion cycle fluctuated throughout the period, with improvements in efficiency seen in some quarters followed by increases in others. For instance, in Q2 2022, the company achieved its lowest cash conversion cycle of -289.73 days, reflecting a very efficient cash conversion process. On the other hand, Q4 2022 saw a higher figure of -275.66 days, indicating a slight slowdown in the conversion cycle.

Overall, NextEra Energy Inc's cash conversion cycle provides insight into the company's management of working capital and its ability to efficiently convert assets into cash. Further analysis and comparison with industry benchmarks would be valuable in assessing the company's performance in this aspect.