PG&E Corp (PCG)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 1.05 1.04 0.90 0.99 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
Quick ratio 0.30 0.28 0.18 0.18 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
Cash ratio 0.06 0.05 0.07 0.04 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

PG&E Corp's liquidity ratios provide insight into the company's ability to meet its short-term financial obligations.

1. Current Ratio: PG&E Corp's current ratio has fluctuated over the past few years, ranging from a low of 0.55 in June 2020 to a high of 1.05 in December 2024. Generally, a current ratio above 1 indicates the company has more current assets than current liabilities, which is favorable for meeting short-term obligations. The current ratio has shown improvement since 2022, suggesting better liquidity position.

2. Quick Ratio: The quick ratio, which excludes inventory from current assets, provides a more conservative measure of liquidity. PG&E Corp's quick ratio has varied between 0.05 in June 2020 to 0.30 in December 2024. A quick ratio below 1 may signify potential difficulties in meeting immediate obligations without relying on inventory sales. The company has improved its quick ratio over the years, indicating enhanced ability to cover short-term liabilities.

3. Cash Ratio: The cash ratio measures the proportion of current liabilities that can be covered by cash and cash equivalents. PG&E Corp's cash ratio has shown some stability over the years, ranging from 0.01 to 0.07. A higher cash ratio indicates a stronger ability to pay off short-term obligations quickly using cash reserves. Although the cash ratio has seen some fluctuations, it generally reflects adequate liquidity with the company maintaining a portion of current liabilities in cash.

In summary, PG&E Corp's liquidity ratios have shown improvements over the years, with the current ratio trending upwards and the quick ratio reflecting better ability to meet short-term obligations. The company's cash reserves also provide a cushion to cover immediate liabilities, indicating a relatively stable liquidity position.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days -1,220.39 -1,374.05 -1,135.14 -1,015.66 -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

The cash conversion cycle of PG&E Corp has exhibited significant fluctuations over the reported periods. The company's cash conversion cycle was negative for most of the time, indicating that PG&E Corp had a more efficient cash conversion process. However, the cycle turned positive in the third quarter of 2022, which might suggest a potential inefficiency in managing cash flows.

From the latter part of 2022 to the end of 2024, PG&E Corp's cash conversion cycle remained significantly negative, indicating a rapid turnover of cash in its operations. This could be due to efficient management of accounts receivable, inventory, and accounts payable, allowing the company to optimize its working capital.

However, the abrupt changes in the cash conversion cycle, particularly the sharp increase from negative to extremely negative values in certain periods, warrant further investigation into PG&E Corp's cash management practices and operational efficiency.