PPL Corporation (PPL)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 306,000 | 542,000 | 282,000 | 276,000 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 266,000 | — | — | — |
| Total current liabilities | US$ in thousands | 3,333,000 | 2,306,000 | 2,515,000 | 2,375,000 | 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 |
| Cash ratio | 0.09 | 0.24 | 0.11 | 0.12 | 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 |
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 of PPL Corporation, as derived from the provided data, indicates the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio is generally considered favorable as it suggests a strong liquidity position.
The cash ratio for PPL Corporation fluctuated over the past few years, ranging from a low of 0.03 on March 31, 2021, to a high of 2.03 on September 30, 2021. This wide range indicates potential volatility in the company's liquidity position.
The ratio saw a significant improvement in the latter part of 2021, peaking at 2.03 on September 30, 2021, indicating that the company had a substantial amount of cash to cover its short-term obligations.
However, the cash ratio decreased in the following quarters, dropping to 0.09 by June 30, 2022, before stabilizing around 0.10-0.24 for the remainder of the reported period.
Overall, the cash ratio analysis suggests that PPL Corporation experienced fluctuations in its liquidity position, with periods of strong cash reserves followed by lower levels of available cash relative to its short-term liabilities. Monitoring this ratio will be crucial for assessing the company's ability to meet its immediate financial obligations in the future.
Peer comparison
Dec 31, 2024