Public Service Enterprise Group Inc (PEG)
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 | 0.67 | 0.63 | 0.67 | 0.79 | 0.64 | 0.60 | 0.78 | 0.89 | 0.88 | 0.84 | 0.71 | 0.79 | 0.66 | 0.76 | 0.65 | 0.72 | 0.64 | 0.75 | 0.79 | 0.68 |
| Quick ratio | 0.35 | 0.32 | 0.38 | 0.57 | 0.42 | 0.34 | 0.56 | 0.67 | 0.41 | 0.42 | 0.39 | 0.54 | 0.41 | 0.48 | 0.35 | 0.44 | 0.34 | 0.36 | 0.35 | 0.41 |
| Cash ratio | 0.01 | 0.01 | 0.10 | 0.22 | 0.07 | 0.06 | 0.28 | 0.30 | 0.12 | 0.22 | 0.02 | 0.18 | 0.10 | 0.18 | 0.07 | 0.15 | 0.03 | 0.03 | 0.02 | 0.01 |
Based on the liquidity ratios of Public Service Enterprise Group Inc. in the table provided, we can observe the following trends:
1. Current Ratio:
The current ratio measures the company's ability to meet its short-term obligations with its current assets. Public Service Enterprise Group's current ratio has fluctuated over the quarters, but overall, it has been below 1.0, indicating that the company may have difficulty meeting its short-term liabilities with its current assets.
2. Quick Ratio:
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity as it excludes inventory from current assets. Similar to the current ratio, Public Service Enterprise Group's quick ratio has been consistently below 1.0. This suggests that the company may struggle to cover its immediate liabilities with its most liquid assets.
3. Cash Ratio:
The cash ratio is the most conservative liquidity ratio, focusing solely on the company's ability to cover its current liabilities with cash and cash equivalents. Public Service Enterprise Group's cash ratio has also been below 1.0 in all quarters, indicating a limited ability to settle short-term obligations with cash on hand.
Overall, based on these liquidity ratios, Public Service Enterprise Group Inc. appears to have liquidity challenges, as evidenced by consistently low current, quick, and cash ratios. Investors and analysts may view these ratios as a cause for concern regarding the company's short-term financial stability and ability to manage its liquidity effectively.
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 | 20.93 | 16.50 | 18.91 | 32.93 | 32.37 | 39.55 | 51.30 | 52.21 | 30.15 | -11.44 | -1.05 | 18.50 | -24.87 | -29.88 | -6.51 | -14.68 | -26.95 | -21.77 | -12.47 | 12.77 |
The cash conversion cycle of Public Service Enterprise Group Inc. has demonstrated fluctuations over the past eight quarters. The company's cash conversion cycle decreased significantly in Q2 and Q3 of 2023 compared to previous quarters, indicating an improvement in managing its working capital.
The cash conversion cycle measures how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle indicates that the company is efficiently managing its inventory, accounts receivable, and accounts payable.
In Q1 2023, the cash conversion cycle increased to 38.42 days, suggesting a potential delay in converting assets into cash compared to the prior quarter. However, this metric improved in Q2 and Q3 2023, with a reduced cycle of 30.78 days and 33.72 days, respectively, indicating a more efficient cash management process during those periods.
Comparing the latest quarter (Q4 2023) to the same period in the previous year (Q4 2022), we observe a substantial decrease in the cash conversion cycle from 59.09 days to 35.00 days. This progress suggests that Public Service Enterprise Group Inc. has enhanced its operational efficiency and is managing its working capital more effectively.
Overall, fluctuations in the cash conversion cycle of Public Service Enterprise Group Inc. indicate varying levels of efficiency in managing its liquidity and working capital. The company should continue to monitor and improve its cash conversion cycle to optimize its financial performance and ensure sustainable growth.