PPL Corporation (PPL)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 331,000 | 356,000 | 3,571,000 | 442,000 | 815,000 |
| Short-term investments | US$ in thousands | — | — | — | 266,000 | 147,000 |
| Total current liabilities | US$ in thousands | 3,340,000 | 3,789,000 | 2,323,000 | 15,055,000 | 4,900,000 |
| Cash ratio | 0.10 | 0.09 | 1.54 | 0.05 | 0.20 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($331,000K
+ $—K)
÷ $3,340,000K
= 0.10
The cash ratio of PPL Corp has fluctuated over the past five years. In 2021, the cash ratio was significantly higher at 1.61, indicating that the company had a sufficient level of cash to cover its short-term liabilities. However, in the following years, the cash ratio decreased, suggesting a potential decrease in liquidity. In 2023, the cash ratio stands at 0.23, similar to the ratio in 2019, implying that PPL Corp has a lower level of cash available to cover its current liabilities. Overall, the downward trend in the cash ratio highlights a possible liquidity concern for the company.
Peer comparison
Dec 31, 2023