WEC Energy Group Inc (WEC)
Cash ratio
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Cash and cash equivalents | US$ in thousands | 9,800 | 42,900 | 28,900 | 16,300 | 24,800 |
Short-term investments | US$ in thousands | — | — | 1,909,200 | 1,789,400 | 1,764,000 |
Total current liabilities | US$ in thousands | 4,841,900 | 5,114,800 | 4,611,000 | 3,753,000 | 4,148,100 |
Cash ratio | 0.00 | 0.01 | 0.42 | 0.48 | 0.43 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($9,800K
+ $—K)
÷ $4,841,900K
= 0.00
The cash ratio of WEC Energy Group Inc has fluctuated over the years based on the provided data. As of December 31, 2020, the cash ratio was 0.43, indicating that the company had $0.43 in cash for every dollar of current liabilities.
By December 31, 2021, the cash ratio improved to 0.48, suggesting that the company had slightly increased its ability to cover its short-term obligations with cash on hand. However, there was a dip by December 31, 2022, with the cash ratio falling back to 0.42.
The significant drop in the cash ratio to 0.01 by December 31, 2023, raises concerns about the company's liquidity position. This low ratio indicates that WEC Energy Group Inc may have struggled to meet its short-term liabilities solely with available cash.
Moreover, the cash ratio dropping further to 0.00 by December 31, 2024, signifies a critical issue with the company's ability to cover its current obligations with cash resources alone. This indicates a potential liquidity crisis that could impact the company's financial health and operations.
In conclusion, the fluctuating trend of WEC Energy Group Inc's cash ratio over the years highlights the importance of closely monitoring the company's liquidity position and managing its cash resources effectively to meet short-term financial obligations.
Peer comparison
Dec 31, 2024