Portland General Electric Co (POR)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 5,000 | 165,000 | 52,000 | 257,000 | 30,000 |
| Short-term investments | US$ in thousands | 19,000 | 116,000 | 102,000 | 33,000 | 25,000 |
| Receivables | US$ in thousands | 552,000 | 529,000 | 446,000 | 368,000 | 167,000 |
| Total current liabilities | US$ in thousands | 1,112,000 | 1,496,000 | 768,000 | 815,000 | 519,000 |
| Quick ratio | 0.52 | 0.54 | 0.78 | 0.81 | 0.43 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($5,000K
+ $19,000K
+ $552,000K)
÷ $1,112,000K
= 0.52
The quick ratio of Portland General Electric Co has shown a slight decline over the past five years, decreasing from 0.78 in 2019 to 0.74 in 2023. This decline indicates that the company's ability to meet its short-term obligations with its most liquid assets has weakened over this period.
A quick ratio below 1.0 suggests that the company may have difficulty meeting its short-term financial obligations using only its current assets that can be quickly converted into cash. While the ratios from 2020 to 2022 were relatively stable around the 0.79 to 0.75 range, the decrease to 0.74 in 2023 raises some concerns about the company's liquidity position.
It is important for investors and stakeholders to monitor the trend of the quick ratio closely, as a declining ratio may signal potential liquidity issues or inefficiencies in managing current assets and liabilities. This analysis suggests that Portland General Electric Co may need to focus on improving its ability to convert current assets into cash quickly in order to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023