PPL Corporation (PPL)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 331,000 | 356,000 | 3,571,000 | 442,000 | 815,000 |
| Short-term investments | US$ in thousands | — | — | — | 266,000 | 147,000 |
| Receivables | US$ in thousands | 1,221,000 | 1,046,000 | 641,000 | 881,000 | 792,000 |
| Total current liabilities | US$ in thousands | 3,340,000 | 3,789,000 | 2,323,000 | 15,055,000 | 4,900,000 |
| Quick ratio | 0.46 | 0.37 | 1.81 | 0.11 | 0.36 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($331,000K
+ $—K
+ $1,221,000K)
÷ $3,340,000K
= 0.46
The quick ratio of PPL Corp has fluctuated over the past five years. In 2023, the quick ratio improved to 0.73 from 0.63 in 2022. This indicates that the company's ability to meet its short-term obligations with its most liquid assets slightly strengthened in 2023 compared to the previous year.
However, the quick ratio was significantly higher in 2021 at 2.02, reflecting a substantial increase in the company's liquidity and its ability to cover immediate liabilities with its quick assets. This significant improvement in 2021 may have been due to better management of current assets and liabilities.
On the other hand, in 2020 and 2019, the quick ratio was relatively low at 0.40 and 0.50, respectively, suggesting a potential liquidity challenge in those years. A low quick ratio indicates that the company may have faced difficulty in meeting its short-term obligations with its readily available assets.
Overall, the trend in PPL Corp's quick ratio shows some volatility, with improvements in certain years and challenges in others. It is important for the company to maintain a healthy quick ratio to ensure its ability to meet short-term financial obligations efficiently.
Peer comparison
Dec 31, 2023