PG&E Corp (PCG)

Liquidity ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 0.83 0.84 0.96 0.83 0.81 0.87 0.78 0.63 0.64 0.65 0.66 0.74 0.71 0.74 0.55 1.28 1.33 1.79 2.03 2.22
Quick ratio 0.15 0.18 0.22 0.24 0.21 0.21 0.16 0.14 0.15 0.13 0.14 0.17 0.17 0.17 0.05 0.40 0.37 0.68 0.83 0.89
Cash ratio 0.04 0.04 0.06 0.07 0.05 0.02 0.02 0.01 0.02 0.02 0.02 0.02 0.04 0.03 0.02 0.24 0.21 0.46 0.61 0.62

PG&E Corp.'s liquidity ratios indicate the company's ability to meet short-term obligations. The current ratio has been fluctuating over the past eight quarters, ranging from a low of 0.78 to a high of 0.96, with Q2 and Q4 of 2023 showing improvements. Despite the recent increase, the current ratio remains below 1, suggesting potential difficulties in covering current liabilities with current assets.

The quick ratio, which excludes inventory from current assets, paints a similar picture, with values ranging from 0.59 to 0.87. While the company had a slight improvement in Q3 and Q4 of 2023, the ratios indicate a limited ability to meet immediate obligations without relying on inventory liquidation.

The cash ratio, reflecting the company's ability to pay off current liabilities with cash and cash equivalents, has been volatile, varying from 0.07 to 0.19. Q4 of 2022 showed the highest cash ratio, while the ratios in 2023 have generally been lower, indicating potential challenges in meeting short-term obligations solely with cash on hand.

Overall, PG&E Corp.'s liquidity ratios suggest a precarious financial position in terms of short-term solvency, with the company potentially facing difficulties in covering immediate liabilities with its current assets and cash reserves. Further monitoring and analysis of the company's liquidity management may be necessary to address these concerns.

Additional liquidity measure

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days -1,001.07 -1,359.96 -1,602.65 -1,915.18 -2,725.90 46.16 37.18 34.95 -3,672.38 -769.95 -192.04 -107.85 -72.28 -94.46 -211.97 -299.17 -2,702.19 -751.61 -474.54 -537.77

The cash conversion cycle of PG&E Corp. has shown significant fluctuations over the past eight quarters. In Q4 2023, the company had a negative cash conversion cycle of -42.92 days, indicating that PG&E Corp. was able to convert its inventory into cash before paying its suppliers and creditors. This was a marked improvement from Q3 2023, where the cash conversion cycle was 15.93 days.

In the earlier quarters of 2023, PG&E Corp. experienced an increasing trend in the cash conversion cycle, reaching 56.25 days in Q2 2023 and 49.47 days in Q1 2023. This suggests that the company took longer to convert its investments in inventory into cash during these periods.

Conversely, in Q4 2022, PG&E Corp. had a significantly negative cash conversion cycle of -63.49 days, indicating a strong ability to efficiently manage its working capital. However, the trend reversed in the following quarters of 2022, with the cash conversion cycle remaining negative but decreasing, reaching its lowest point of -75.34 days in Q2 2022 and -62.39 days in Q1 2022.

Overall, the cash conversion cycle of PG&E Corp. has demonstrated fluctuations over the examined quarters, with periods of efficient working capital management and others where the cycle was extended. This suggests that the company may have experienced challenges in managing its inventory, receivables, and payables effectively during certain quarters.