Sempra Energy (SRE)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 5,285,000 | 5,470,000 | 5,912,000 | 4,375,000 | 4,511,000 |
| Total current liabilities | US$ in thousands | 9,676,000 | 10,090,000 | 9,899,000 | 10,035,000 | 6,839,000 |
| Current ratio | 0.55 | 0.54 | 0.60 | 0.44 | 0.66 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,285,000K ÷ $9,676,000K
= 0.55
The current ratio of Sempra Energy has shown fluctuations over the past five years, with values of 0.66 in 2020, 0.44 in 2021, 0.60 in 2022, 0.54 in 2023, and 0.55 in 2024. The current ratio measures a company's ability to cover its short-term liabilities with its short-term assets. A higher current ratio generally indicates a stronger liquidity position, as the company has more current assets to cover its current liabilities.
Sempra Energy's current ratio has generally been below 1 in the provided years, indicating that the company may have faced challenges in meeting its short-term obligations using its current assets alone. It suggests that Sempra Energy may have relied more on short-term financing to fulfill its current liabilities during these periods. A current ratio below 1 may raise concerns about the company's liquidity and ability to meet its short-term financial obligations.
It would be important for Sempra Energy to closely monitor its current ratio and take steps to improve it if needed, such as increasing current assets or reducing current liabilities, to ensure its short-term financial health and stability.
Peer comparison
Dec 31, 2024