NRG Energy Inc. (NRG)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 541,000 | 430,000 | 250,000 | 3,905,000 | 345,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 860,000 |
| Receivables | US$ in thousands | 3,542,000 | 4,778,000 | 3,245,000 | 904,000 | 1,025,000 |
| Total current liabilities | US$ in thousands | 9,500,000 | 12,982,000 | 7,915,000 | 1,915,000 | 2,359,000 |
| Quick ratio | 0.43 | 0.40 | 0.44 | 2.51 | 0.95 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($541,000K
+ $—K
+ $3,542,000K)
÷ $9,500,000K
= 0.43
The quick ratio of NRG Energy Inc. has fluctuated over the past five years, ranging from 0.96 to 2.97. A quick ratio below 1.0 suggests that the company may have difficulty meeting its short-term obligations with its most liquid assets, indicating potential liquidity concerns. However, a quick ratio above 1.0 indicates that the company has an adequate amount of liquid assets to cover its current liabilities.
The quick ratio of 0.96 at the end of 2023 indicates a slight decrease from the previous year, signaling a potential deterioration in the company's liquidity position. This could be a concern if the trend continues without improvement in the upcoming periods. It is important for investors and stakeholders to monitor NRG Energy Inc.'s quick ratio over time to assess its ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023