PPL Corporation (PPL)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,880,000 | 2,932,000 | 2,824,000 | 5,007,000 | 20,900,000 |
| Total current liabilities | US$ in thousands | 3,333,000 | 3,340,000 | 3,789,000 | 2,323,000 | 15,055,000 |
| Current ratio | 0.86 | 0.88 | 0.75 | 2.16 | 1.39 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,880,000K ÷ $3,333,000K
= 0.86
The current ratio of PPL Corporation has fluctuated over the past five years. In December 2020, the current ratio was 1.39, indicating the company had $1.39 in current assets for every dollar of current liabilities. The ratio improved significantly to 2.16 by December 2021, suggesting a stronger liquidity position. However, there was a notable decline in the current ratio to 0.75 by December 2022, indicating a potential strain on the company's ability to meet short-term obligations. In the following years, the ratio improved slightly to 0.88 in December 2023 and 0.86 in December 2024, but it remained below 1, suggesting a continued need for careful management of current assets and liabilities to ensure financial stability.
Peer comparison
Dec 31, 2024