Sempra Energy (SRE)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 | — |
| Receivables | US$ in thousands | 2,276,000 | 2,802,000 | 2,173,000 | 1,711,000 | 1,405,000 |
| Total current liabilities | US$ in thousands | 10,090,000 | 9,899,000 | 10,035,000 | 6,839,000 | 9,150,000 |
| Quick ratio | 0.25 | -1.18 | 0.27 | 2.21 | 0.17 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($236,000K
+ $—K
+ $2,276,000K)
÷ $10,090,000K
= 0.25
The quick ratio measures the ability of a company to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities without selling inventory or obtaining additional financing.
Sempra's quick ratio has fluctuated over the past five years, ranging from 0.28 in 2019 to 0.61 in 2020. The trend shows some volatility in the company's ability to cover its short-term obligations with its most liquid assets.
In 2023, the quick ratio decreased to 0.49, indicating a decline in the company's short-term liquidity compared to the previous year. This may suggest that Sempra's ability to meet its short-term obligations with its quick assets has weakened.
It is important for investors and stakeholders to monitor the quick ratio over time to assess Sempra's liquidity position and its ability to manage short-term financial commitments effectively. Further analysis may be needed to understand the reasons behind the fluctuations in the quick ratio and to evaluate the company's overall financial health and sustainability.
Peer comparison
Dec 31, 2023