Public Service Enterprise Group Inc (PEG)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 54,000 | 465,000 | 818,000 | 543,000 | 147,000 |
| Short-term investments | US$ in thousands | — | — | — | 60,000 | 113,000 |
| Total current liabilities | US$ in thousands | 5,057,000 | 6,680,000 | 7,072,000 | 5,522,000 | 5,047,000 |
| Cash ratio | 0.01 | 0.07 | 0.12 | 0.11 | 0.05 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($54,000K
+ $—K)
÷ $5,057,000K
= 0.01
The cash ratio of Public Service Enterprise Group Inc. has shown a declining trend over the past five years. In 2023, the cash ratio was 0.12, down from 0.15 in 2022 and 0.14 in 2019. This indicates that the company had $0.12 in cash and cash equivalents for every dollar of current liabilities in 2023.
A decreasing cash ratio can suggest that the company's ability to cover its short-term obligations with cash on hand is weakening. It may indicate that the company is becoming less liquid or that its current liabilities are increasing at a faster rate than its cash reserves.
It is important for investors and stakeholders to monitor the trend of the cash ratio to assess the company's liquidity position and its ability to meet its short-term obligations without relying on external sources of funding. A low cash ratio may raise concerns about the company's financial health and ability to weather unexpected financial challenges.
Peer comparison
Dec 31, 2023