Portland General Electric Co (POR)

Liquidity ratios

	Dec 31, 2024	Sep 30, 2024	Jun 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
Current ratio	0.92	0.98	1.00	1.22	0.84	1.14	0.89	1.02	0.81	0.76	0.87	0.94	0.90	1.04	0.71	0.80	0.88	0.78	0.96	0.80
Quick ratio	0.01	0.04	0.01	0.20	0.00	0.12	0.05	0.06	0.19	0.06	0.14	0.40	0.20	0.56	0.17	0.24	0.33	0.30	0.39	0.05
Cash ratio	0.01	0.04	0.01	0.20	0.00	0.12	0.05	0.06	0.19	0.06	0.14	0.40	0.20	0.56	0.17	0.24	0.33	0.30	0.39	0.05

The current ratio for Portland General Electric Co has fluctuated over the years, with a low of 0.71 in June 30, 2021, and a high of 1.22 in March 31, 2024. The ratio improved significantly in the latter half of 2023 and remained strong in 2024, indicating the company's ability to meet its short-term obligations with its current assets.

The quick ratio, which excludes inventory from current assets, provides a more conservative measure of liquidity. Portland General Electric Co's quick ratio also shows variation but generally remained low throughout the period, with the lowest point of 0.00 in December 31, 2023. This suggests that the company may have difficulties meeting its most immediate liabilities without relying on inventory.

The cash ratio, which is the most stringent liquidity measure as it considers only cash and cash equivalents, reflects a similar trend to the quick ratio for Portland General Electric Co. The company's ability to cover its short-term obligations with cash on hand has been limited, with several points below 0.10 over the years.

Overall, while the current ratio improved in recent years, indicating a better ability to cover short-term obligations with current assets, the quick ratio and cash ratio show that Portland General Electric Co may face challenges in meeting its most immediate liabilities with liquid assets alone. Management may need to closely monitor liquidity levels and consider strategies to strengthen the company's short-term financial position.

Additional liquidity measure

		Dec 31, 2024	Sep 30, 2024	Jun 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
Cash conversion cycle	days	19.75	19.98	21.61	24.64	30.30	33.40	34.52	31.81	35.10	36.26	41.81	30.74	34.64	35.69	33.76	33.78	37.12	43.66	67.20	60.21

The cash conversion cycle of Portland General Electric Co has shown fluctuations over the reported period. The cycle measures the time it takes for a company to convert its investment in inventory into cash flows from sales. A shorter cash conversion cycle indicates a more efficient use of cash and working capital.

Analyzing the data provided, we observe that the cash conversion cycle decreased from 60.21 days as of March 31, 2020, to 19.75 days by December 31, 2024. This downward trend suggests that the company has been improving its efficiency in managing cash flows, inventory, and receivables over time.

Notably, there were periods of increase in the cash conversion cycle, such as in June 2020 and June 2022, where the cycle exceeded 40 days. These increases may indicate potential challenges in managing working capital or delays in converting inventory into sales.

Overall, the decreasing trend in the cash conversion cycle is a positive indicator of Portland General Electric Co's improved efficiency in managing its cash flow operations. It suggests the company is becoming more adept at converting its investments into cash inflows, which can lead to improved liquidity and financial performance.