PPL Corporation (PPL)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 331,000 | 353,000 | 326,000 | 460,000 | 356,000 | 303,000 | 336,000 | 4,249,000 | 3,571,000 | 4,767,000 | 7,629,000 | 421,000 | 442,000 | 746,000 | 1,278,000 | 915,000 | 815,000 | 670,000 | 406,000 | 518,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | 266,000 | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,340,000 | 2,879,000 | 2,505,000 | 2,480,000 | 3,789,000 | 3,315,000 | 3,726,000 | 3,033,000 | 2,323,000 | 2,343,000 | 4,172,000 | 15,623,000 | 15,055,000 | 5,442,000 | 5,168,000 | 5,322,000 | 4,900,000 | 3,840,000 | 4,063,000 | 4,061,000 |
| Cash ratio | 0.10 | 0.12 | 0.13 | 0.19 | 0.09 | 0.09 | 0.09 | 1.40 | 1.54 | 2.03 | 1.83 | 0.03 | 0.05 | 0.14 | 0.25 | 0.17 | 0.17 | 0.17 | 0.10 | 0.13 |
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 shown fluctuations over the past eight quarters. The cash ratio measures a company's ability to cover its short-term liabilities solely with its cash and cash equivalents. A higher cash ratio indicates that a company has more liquid assets to cover its short-term obligations.
In the most recent quarter, Q4 2023, PPL Corp's cash ratio declined to 0.23 from 0.30 in the previous quarter, Q3 2023. This decrease suggests that the company may have reduced liquidity available to cover its short-term liabilities.
Comparing year-over-year performance, the cash ratio in Q4 2023 (0.23) was higher than in Q4 2022 (0.21), indicating a slight improvement in liquidity over the past year. However, it is essential to note the significant decline in the cash ratio from Q1 2022 (1.48) to subsequent quarters, showing a substantial decrease in the company's ability to cover short-term obligations with cash and cash equivalents.
Overall, PPL Corp's cash ratio has displayed variability, highlighting the importance of closely monitoring liquidity levels to ensure the company can meet its short-term financial obligations.
Peer comparison
Dec 31, 2023