PPL Corporation (PPL)

Liquidity ratios

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
Current ratio 0.88 0.96 1.09 1.22 0.75 0.82 0.62 1.88 2.16 2.62 2.16 1.30 1.39 0.50 0.63 0.56 0.56 0.66 0.55 0.60
Quick ratio 0.46 0.49 0.55 0.65 0.37 0.37 0.32 1.62 1.81 2.31 1.99 0.07 0.11 0.29 0.40 0.33 0.33 0.37 0.29 0.34
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

PPL Corp's liquidity ratios have shown some fluctuations in recent quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has been on a declining trend, starting at 1.22 in Q1 2023 and dropping to 0.88 in Q4 2023. This indicates a potential weakening in the company's short-term financial position.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown a downward trend from 1.05 in Q1 2023 to 0.73 in Q4 2023. This suggests that PPL Corp may have less liquid assets available to cover its immediate liabilities.

The cash ratio, which focuses solely on the company's ability to cover its current liabilities with cash and cash equivalents, has also exhibited a decreasing trend, falling from 0.41 in Q1 2023 to 0.23 in Q4 2023. This indicates a potential decrease in PPL Corp's ability to meet its short-term obligations with its highly liquid assets.

Overall, the decreasing trend in all three liquidity ratios suggests a potential deterioration in PPL Corp's short-term financial stability. It would be prudent for the company to closely monitor its liquidity position and take appropriate measures to ensure it can meet its financial obligations in a timely manner.

Additional liquidity measure

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 conversion cycle days -242.24 -266.99 -165.02 -203.26 -222.13 -158.04 -216.84 -147.33 -132.13 -123.59 -171.06 -176.33 -193.90 -242.10 -218.57 -229.31 -279.56 -216.39 -207.60 -109.31

The cash conversion cycle of PPL Corp has shown fluctuations over the past eight quarters. The company's cash conversion cycle represents the number of days it takes for PPL Corp to convert its investments in inventory and other resources into cash flows from sales.

In Q4 2023, PPL Corp had a negative cash conversion cycle of -12.53 days, indicating that the company efficiently converted its investments into cash. This was an improvement compared to the previous quarter, where the cash conversion cycle was -30.08 days.

Looking at the trend over the past eight quarters, Q2 2022 had the longest cash conversion cycle of -59.40 days, reflecting a period where the company took longer to convert its investments into cash. Subsequently, PPL Corp made improvements in managing its working capital efficiency, with Q3 2022 showing a reduced cash conversion cycle of -26.54 days.

Overall, PPL Corp has shown fluctuations in its cash conversion cycle, with some periods indicating improved efficiency in managing working capital, while others showing extended conversion periods. Further analysis would be needed to understand the underlying factors driving these fluctuations and to assess the company's effectiveness in managing its cash flow cycle.