PG&E Corp (PCG)

PG&E Corp.'s liquidity ratios indicate the company's ability to meet its short-term obligations with available assets. The current ratio has been consistently below 1 in recent years, suggesting that the company may have difficulty meeting its current liabilities with its current assets alone. The downward trend from 2019 to 2021 is concerning, although there was a slight improvement in 2022 and 2023.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also shows a similar trend to the current ratio. The company's ability to meet its short-term obligations without relying on inventory has been weakening over the years.

The cash ratio, which indicates the proportion of current liabilities that can be covered by cash and cash equivalents, has also shown a decline over the period under review. This may indicate a potentially precarious liquidity position for PG&E Corp.

Overall, based on the liquidity ratios, PG&E Corp. appears to be facing challenges in meeting its short-term obligations with its current asset base. Management may need to focus on improving liquidity by increasing cash reserves or optimizing current asset management to enhance the company's ability to fulfill its financial commitments.

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Additional liquidity measure

Based on the data provided, PG&E Corp.'s cash conversion cycle has exhibited fluctuating trends over the past five years. The company has shown improvements in managing its cash conversion cycle efficiency. The negative values indicate that PG&E Corp. has been able to convert its operating cycle into cash more quickly than in previous years.

In 2023, the cash conversion cycle decreased to -42.92 days from -63.49 days in 2022, indicating a shorter time for PG&E Corp. to convert its investments in inventory and accounts receivable into cash. This can be seen as a positive sign of more efficient working capital management.

Looking back further, in 2021 and 2020, the cash conversion cycle continued to improve to -97.39 days and -121.76 days, respectively. This suggests that PG&E Corp. was able to manage its working capital more effectively, leading to faster cash generation from its core operations.

However, in 2019, the cash conversion cycle had a positive value of -15.89 days, indicating that it took slightly longer to convert its operating cycle into cash compared to subsequent years.

Overall, the trend of decreasing negative values in the cash conversion cycle for PG&E Corp. suggests improvements in the efficiency of its working capital management and cash flow generation over the past five years.