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.
Peer comparison
Dec 31, 2024