PG&E Corp (PCG)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	635,000	734,000	291,000	484,000	1,570,000
Short-term investments	US$ in thousands	33,230,000	—	—	—	—
Total current liabilities	US$ in thousands	17,314,000	15,788,000	17,427,000	13,581,000	7,631,000
Cash ratio		1.96	0.05	0.02	0.04	0.21

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($635,000K + $33,230,000K) ÷ $17,314,000K
= 1.96

The cash ratio for PG&E Corp. has fluctuated over the past five years. The ratio stood at 0.16 as of December 31, 2023, indicating a decrease from the previous year. In comparison to the data from December 31, 2022, where the ratio was 0.19, the current ratio suggests a lower proportion of cash and cash equivalents relative to current liabilities.

Looking back over the last five years, the cash ratio reached its lowest point at 0.12 on December 31, 2021. This could have signaled potential liquidity concerns or a need to manage working capital more efficiently. The ratio then improved in the following year, rising to 0.20 by December 31, 2020, which indicates a healthier liquidity position.

The highest cash ratio in the provided data set was observed on December 31, 2019, at 0.25. This suggests that the company had a higher level of cash and cash equivalents relative to current liabilities at that time, indicating a strong liquidity position.

Overall, the fluctuation in PG&E Corp.'s cash ratio over the years reflects changes in the company's liquidity management and financial position, highlighting the importance of monitoring this ratio to assess the firm's ability to meet short-term obligations using its available cash resources.