Public Service Enterprise Group Inc (PEG)
Liquidity ratios
| Dec 31, 2024 | Sep 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.65 | 0.68 | 0.79 | 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 |
| Quick ratio | 0.37 | 0.82 | 0.56 | 0.35 | 0.32 | 0.38 | 0.57 | 0.42 | 0.34 | 0.25 | 0.67 | 0.41 | 0.42 | 0.39 | 0.54 | 0.41 | 0.48 | 0.35 | 0.44 | 0.34 |
| Cash ratio | 0.02 | 0.54 | 0.24 | 0.01 | 0.01 | 0.10 | 0.22 | 0.07 | 0.06 | -0.03 | 0.30 | 0.12 | 0.22 | 0.02 | 0.18 | 0.10 | 0.18 | 0.07 | 0.15 | 0.03 |
Public Service Enterprise Group Inc's liquidity ratios have shown some fluctuations over the period under review. The current ratio, which measures the company's ability to cover short-term liabilities with assets that can quickly be converted to cash, improved from 0.64 as of December 31, 2019, to 0.65 as of June 30, 2020, but then declined to 0.60 as of September 30, 2022, before recovering to 0.68 as of September 30, 2024. This indicates that the company may have faced challenges in managing its short-term obligations during the period.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also experienced fluctuations. It ranged from 0.34 as of December 31, 2019, to a peak of 0.82 as of September 30, 2024. This suggests that the company had varying levels of ability to meet its immediate payment obligations without relying on selling inventory during the period.
The cash ratio, which focuses solely on the most liquid assets, showed similar volatility. It started at 0.03 as of December 31, 2019, increased significantly to 0.30 as of March 31, 2022, then declined to -0.03 as of June 30, 2022, indicating that the company may have had difficulties in maintaining a sufficient cash balance to cover its short-term debts. However, the ratio improved to 0.54 as of September 30, 2024, suggesting a better cash position.
Overall, while Public Service Enterprise Group Inc's liquidity ratios have fluctuated over the period, it is important for the company to closely monitor and manage its liquidity position to ensure it can meet its short-term financial obligations effectively.
Additional liquidity measure
| Dec 31, 2024 | Sep 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 61.23 | 41.19 | 49.83 | 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 |
The cash conversion cycle of Public Service Enterprise Group Inc has shown fluctuations over the period under review. The company experienced negative cash conversion cycles in various quarters, indicating efficient management of working capital during those periods. However, there have been instances where the cash conversion cycle turned positive, suggesting potential challenges in managing the company's cash flow and working capital needs.
The cash conversion cycle was relatively stable in 2019 and 2020, with negative values indicating that the company was able to convert its investments in inventory and receivables into cash relatively quickly. However, starting from March 2021, the cash conversion cycle turned positive, indicating a slowdown in the company's ability to convert its resources into cash efficiently.
The peak in the cash conversion cycle was observed in December 2024, with a cycle of 61.23 days, indicating a significant delay in the company's cash conversion process. This could be a concerning trend as a longer cash conversion cycle can tie up working capital and hinder the company's liquidity position.
Overall, the analysis of Public Service Enterprise Group Inc's cash conversion cycle suggests that the company has experienced periods of both efficient and inefficient working capital management. Monitoring and optimizing the cash conversion cycle will be essential for the company to maintain a healthy cash flow position and ensure operational stability.