Sempra Energy (SRE)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 236,000 | 370,000 | 559,000 | 960,000 | 108,000 |
| Short-term investments | US$ in thousands | — | -14,809,000 | — | 12,440,000 | — |
| Total current liabilities | US$ in thousands | 10,090,000 | 9,899,000 | 10,035,000 | 6,839,000 | 9,150,000 |
| Cash ratio | 0.02 | -1.46 | 0.06 | 1.96 | 0.01 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($236,000K
+ $—K)
÷ $10,090,000K
= 0.02
The cash ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher ratio indicates a stronger liquidity position.
Looking at Sempra's cash ratio over the past five years, we observe fluctuations in the ratio. The cash ratio has ranged from 0.08 in 2019 to 0.30 in 2020, indicating varying levels of liquidity.
In 2020, Sempra had its highest cash ratio of 0.30, suggesting a strong ability to cover its short-term obligations with available cash. However, in 2019, the ratio dropped to 0.08, indicating a lower level of liquidity during that period.
In the most recent year, 2023, Sempra's cash ratio stood at 0.21, demonstrating an improvement from the previous year's ratio of 0.20. This indicates that Sempra has enhanced its liquidity position compared to the prior year.
Overall, the trend in Sempra's cash ratio shows some volatility, but the company appears to have managed its liquidity effectively, with fluctuations likely influenced by specific operational and financial decisions undertaken during the respective years.
Peer comparison
Dec 31, 2023