PG&E Corp (PCG)

The liquidity ratios of PG&E Corp, as indicated by the current ratio, quick ratio, and cash ratio, have displayed fluctuations over the years.

1. Current ratio: PG&E Corp's current ratio has fluctuated over the years, starting at a relatively low 0.71 in 2020, and improving to 1.05 by the end of 2024. Despite the fluctuations, the current ratio indicates the ability of PG&E Corp to cover its short-term liabilities with its current assets. A current ratio above 1 suggests the company can meet its short-term obligations.

2. Quick ratio: The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, has also shown variability for PG&E Corp. Starting at a low of 0.15 in 2021, the ratio improved to 0.30 by the end of 2024. This signifies the company's ability to cover its short-term obligations with its most liquid assets.

3. Cash ratio: The cash ratio, which provides insight into a company's ability to cover its short-term liabilities with its available cash and cash equivalents, has also exhibited fluctuations for PG&E Corp. The ratio ranged from 0.02 in 2021 to 0.06 in 2024, indicating the company's capacity to pay off its current liabilities solely from its cash reserves.

In summary, while there have been fluctuations in PG&E Corp's liquidity ratios over the years, the overall trend shows improvement, with the company displaying a better ability to meet its short-term obligations using current assets, liquid assets, and cash reserves.

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Additional liquidity measure

The cash conversion cycle of PG&E Corp has shown some fluctuations over the years based on the provided data. The trend indicates that the company has been able to effectively manage its cash flow and working capital. In particular, the cycle has decreased significantly from -3,475.30 days in December 2020 to -1,220.39 days by December 2024.

A negative cash conversion cycle signifies that PG&E Corp is able to convert its investments in inventory and accounts receivable into cash quickly, which is a positive indication of efficiency in managing its operating cycle. The decreasing trend suggests improvements in managing cash flows and working capital efficiency over the years. Overall, the company appears to be handling its cash conversion cycle effectively, which can have positive implications for its financial health.