PPL Corporation (PPL)
Quick ratio
| 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 | US$ in thousands | 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 | 815,000 | 670,000 | 406,000 | 518,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | 266,000 | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 1,221,000 | 1,068,000 | 1,049,000 | 1,154,000 | 1,046,000 | 926,000 | 867,000 | 669,000 | 641,000 | 651,000 | 658,000 | 711,000 | 881,000 | 830,000 | 771,000 | 837,000 | 792,000 | 737,000 | 772,000 | 853,000 |
| Total current liabilities | US$ in thousands | 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 | 4,900,000 | 3,840,000 | 4,063,000 | 4,061,000 |
| 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 |
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 measures the ability of a company to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates a stronger liquidity position.
Looking at the quarterly data for PPL Corp, we can see that the quick ratio has fluctuated over the past eight quarters. In Q1 2022, the quick ratio was very high at 1.79, indicating a strong ability to cover short-term liabilities with liquid assets. However, in subsequent quarters, the quick ratio decreased significantly, reaching a low of 0.53 in Q2 2022 before gradually increasing again.
In the most recent quarter, Q4 2023, the quick ratio improved to 0.73 from the previous quarter's 0.79. While the quick ratio has shown some volatility, it is important to consider the industry benchmarks and company's historical trends when assessing its liquidity position. Further analysis may be needed to understand the factors contributing to these fluctuations and to evaluate the overall financial health of PPL Corp.
Peer comparison
Dec 31, 2023