Sempra Energy (SRE)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,565,000 | 236,000 | 370,000 | 559,000 | 960,000 |
| Short-term investments | US$ in thousands | 23,234,000 | -49,000 | -14,809,000 | — | 12,440,000 |
| Total current liabilities | US$ in thousands | 9,676,000 | 10,090,000 | 9,899,000 | 10,035,000 | 6,839,000 |
| Cash ratio | 2.56 | 0.02 | -1.46 | 0.06 | 1.96 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,565,000K
+ $23,234,000K)
÷ $9,676,000K
= 2.56
The cash ratio of Sempra Energy has shown fluctuations over the years based on the provided data. As of December 31, 2020, the cash ratio was 1.96, indicating that the company had sufficient cash and cash equivalents to cover its current liabilities. However, by December 31, 2021, the cash ratio significantly decreased to 0.06, suggesting a potential strain on liquidity.
The cash ratio further declined to -1.46 as of December 31, 2022, which may raise concerns about the company's ability to meet its short-term obligations with its existing cash resources. By December 31, 2023, the cash ratio improved slightly to 0.02 but remained relatively low.
In a positive turn, as of December 31, 2024, the cash ratio increased significantly to 2.56, indicating a stronger position in terms of liquidity. Overall, it is important for Sempra Energy to closely monitor its cash management practices to ensure adequate liquidity to meet its financial obligations in a sustainable manner.
Peer comparison
Dec 31, 2024