Portland General Electric Co (POR)

The current ratio of Portland General Electric Co has shown a fluctuating trend over the years, starting at 0.88 in 2020 and slightly improving to 0.90 in 2021. However, there was a decline in 2022 to 0.81 before recovering to 0.84 in 2023 and then increasing to 0.92 in 2024. This indicates that the company's ability to cover its short-term obligations with its current assets has been somewhat inconsistent.

In contrast, the quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has been relatively low and declining. The quick ratio started at 0.36 in 2020, decreased to 0.20 in 2021, and continued to decline to 0.01 in 2024. This downward trend suggests that the company may have difficulties meeting its immediate obligations without relying on inventory.

Similarly, the cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents, also follows a downward trend, starting at 0.36 in 2020 and declining to 0.01 in 2024. This indicates that Portland General Electric Co may have limited cash reserves available to meet its short-term liabilities.

Overall, the liquidity ratios of Portland General Electric Co indicate some challenges in meeting short-term obligations, as evidenced by the declining quick and cash ratios. It would be important for the company to closely monitor its liquidity position and take steps to improve its ability to meet short-term financial commitments.

---

Additional liquidity measure

The cash conversion cycle of Portland General Electric Co has shown a favorable trend over the years, indicating efficient management of working capital. The cycle decreased from 37.12 days in December 2020 to 22.44 days in December 2024. This suggests that the company has been able to convert its investments in inventory and receivables into cash more quickly. A decreasing cash conversion cycle generally signifies effective inventory management and quicker collection of receivables, leading to improved liquidity and operational efficiency for the company.