PPL Corporation (PPL)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 306,000 331,000 356,000 3,571,000 442,000
Short-term investments US$ in thousands 266,000
Receivables US$ in thousands 1,037,000 1,221,000 1,046,000 641,000 881,000
Total current liabilities US$ in thousands 3,333,000 3,340,000 3,789,000 2,323,000 15,055,000
Quick ratio 0.40 0.46 0.37 1.81 0.11

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($306,000K + $—K + $1,037,000K) ÷ $3,333,000K
= 0.40

The quick ratio of PPL Corporation has displayed significant fluctuations over the past five years. Starting at a very low level of 0.11 on December 31, 2020, the quick ratio witnessed a tremendous improvement by the end of 2021, surging to 1.81. However, this ratio declined notably in the subsequent years, standing at 0.37 on December 31, 2022, before slightly recovering to 0.46 by December 31, 2023. Finally, as of December 31, 2024, the quick ratio for PPL Corporation settled at 0.40, indicating the company's ability to meet its short-term obligations with its most liquid assets. The fluctuating trend in the quick ratio suggests varying levels of liquidity and highlights the importance of monitoring the company's current assets to current liabilities ratio for a comprehensive understanding of its short-term financial health.