PG&E Corp (PCG)

Current ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total current assets US$ in thousands 17,216,000 14,383,000 12,815,000 11,077,000 9,602,000
Total current liabilities US$ in thousands 16,330,000 17,314,000 15,788,000 17,427,000 13,581,000
Current ratio 1.05 0.83 0.81 0.64 0.71

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $17,216,000K ÷ $16,330,000K
= 1.05

The current ratio of PG&E Corp has fluctuated over the past five years. It was 0.71 as of December 31, 2020, indicating that the company may have had challenges meeting its short-term obligations with its current assets. The ratio declined to 0.64 by December 31, 2021, which could have raised concerns about liquidity and solvency.

However, there was a notable improvement in the current ratio to 0.81 by December 31, 2022, suggesting that the company may have strengthened its ability to cover its current liabilities with its current assets. This positive trend continued, with the ratio further increasing to 0.83 by December 31, 2023.

The most recent data point shows a current ratio of 1.05 as of December 31, 2024, indicating that PG&E Corp's liquidity position has significantly improved, surpassing the industry average of 1. This suggests that the company may have more than enough current assets to cover its current liabilities, which is a positive sign for its financial health and ability to meet its short-term obligations.