PPL Corporation (PPL)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 306,000 331,000 356,000 3,571,000 442,000
Short-term investments US$ in thousands 266,000
Total current liabilities US$ in thousands 3,333,000 3,340,000 3,789,000 2,323,000 15,055,000
Cash ratio 0.09 0.10 0.09 1.54 0.05

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($306,000K + $—K) ÷ $3,333,000K
= 0.09

The cash ratio for PPL Corporation has shown fluctuations over the past five years. The ratio has improved significantly from 0.05 in December 2020 to 1.54 in December 2021, indicating a substantial increase in the company's ability to cover its short-term liabilities with its cash and cash equivalents. However, there was a sharp decline in the cash ratio to 0.09 in December 2022, followed by a slight increase to 0.10 in December 2023, and then remained relatively stable at 0.09 in December 2024.

Overall, PPL Corporation's cash ratio indicates a varying level of liquidity over the years, with a notable improvement in 2021, but subsequent fluctuations in the following years. The company should continue to monitor its liquidity position to ensure it can meet its short-term obligations effectively.