Portland General Electric Co (POR)

The liquidity ratios of Portland General Electric Co reflect its ability to meet short-term obligations effectively.

The current ratio, which compares current assets to current liabilities, has been fluctuating over the past five years, with a decreasing trend from 0.96 in 2019 to 0.84 in 2023. A current ratio below 1 indicates potential difficulties in meeting short-term obligations.

The quick ratio, also known as the acid-test ratio, is a more stringent measure of liquidity as it excludes inventory from current assets. This ratio has shown a similar declining trend, from 0.78 in 2019 to 0.74 in 2023, indicating that the company may face challenges in meeting its immediate liabilities.

The cash ratio, which specifically assesses the ability to cover current liabilities with cash and cash equivalents, has been fluctuating over the years. Although it increased to 0.48 in 2022, it declined to 0.37 in 2023, indicating that the company may have limited cash reserves relative to its short-term obligations.

Overall, the liquidity ratios of Portland General Electric Co suggest a concerning trend of decreasing liquidity over the past five years, which may warrant further investigation into the company's cash management and ability to meet short-term obligations.

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Additional liquidity measure

The cash conversion cycle of Portland General Electric Co has shown varying trends over the past five years. In 2023, the company's cash conversion cycle improved significantly to -20.08 days, a positive sign indicating efficient management of working capital. This represents a sharp decrease from the previous year, where the cash conversion cycle was -78.85 days, which suggests the company was able to convert its inventory and receivables into cash at a faster pace.

In 2021, the cash conversion cycle was -23.59 days, indicating a slight improvement from the previous year. However, it was notably lower than the positive cycle observed in 2020, where the cash conversion cycle was 4.36 days. This suggests that the company took longer to convert its cash back into inventory or receivables in 2021 compared to 2020.

Moreover, in 2019, the cash conversion cycle was 2.48 days, indicating a relatively efficient cycle. The negative cycles observed in recent years indicate that Portland General Electric Co has been able to manage its cash flows effectively, with faster conversion of inventory and receivables into cash.

Overall, the trend in the cash conversion cycle for Portland General Electric Co has been positive, showing improvements in working capital management over the years.