Sempra Energy (SRE)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 5,470,000 | 5,912,000 | 4,375,000 | 4,511,000 | 3,339,000 |
| Total current liabilities | US$ in thousands | 10,090,000 | 9,899,000 | 10,035,000 | 6,839,000 | 9,150,000 |
| Current ratio | 0.54 | 0.60 | 0.44 | 0.66 | 0.36 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,470,000K ÷ $10,090,000K
= 0.54
The current ratio of Sempra over the past five years has fluctuated significantly, ranging from 0.36 to 0.66. The current ratio measures a company's ability to cover its short-term liabilities with its short-term assets. A ratio below 1 indicates potential liquidity issues and may signal difficulties in meeting short-term obligations.
In 2023, Sempra's current ratio decreased to 0.54 from 0.60 in 2022, suggesting a slight deterioration in its short-term liquidity position. However, it is worth noting that the current ratio in 2023 remains above 0.5, indicating that Sempra still has sufficient short-term assets to cover its short-term liabilities.
Looking at the trend over the past five years, the current ratio has shown some volatility, with fluctuations possibly reflecting changes in the company's operating cycle, cash management practices, or capital structure. It is important for investors and stakeholders to monitor the current ratio over time to assess Sempra's ability to manage its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023