WEC Energy Group Inc (WEC)

Liquidity ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 0.55 0.60 0.60 0.75 0.69 0.82 0.69 0.79 0.71 0.65 0.68 0.63 0.50 0.61 0.49 0.65 0.66 0.63 0.55 0.69
Quick ratio 0.30 0.32 0.33 0.48 0.81 0.96 0.87 1.07 0.88 0.79 0.89 0.85 0.72 0.94 0.28 0.42 0.38 -0.04 -0.03 -0.05
Cash ratio 0.01 0.01 0.01 0.01 0.42 0.57 0.49 0.57 0.48 0.49 0.54 0.48 0.43 0.62 0.00 0.01 0.01 0.01 0.01 0.01

The liquidity ratios of WEC Energy Group Inc have shown a mixed trend over the past eight quarters.

The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has fluctuated between 0.55 and 0.82. A declining trend in the current ratio from Q1 2023 to Q4 2023 suggests that the company may be facing challenges in meeting its short-term obligations with its current assets.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown variability ranging from 0.40 to 0.67. The declining trend in the quick ratio from Q1 2023 to Q4 2023 indicates a potential decrease in the company's ability to meet its short-term obligations without relying on inventory.

The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, has fluctuated between 0.10 and 0.17. A downward trend in the cash ratio from Q1 2023 to Q4 2023 may indicate a reduction in the company's ability to cover its short-term liabilities solely with cash on hand.

Overall, the decreasing trend in the current ratio, quick ratio, and cash ratio from Q1 2023 to Q4 2023 suggests that WEC Energy Group Inc may be experiencing some challenges in maintaining its liquidity position and meeting its short-term obligations. Further analysis and monitoring of the company's liquidity management practices may be necessary to address these trends.

Additional liquidity measure

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 82.11 65.48 63.45 77.15 58.93 53.65 35.42 60.81 51.31 50.28 45.87 53.93 41.44 55.60 50.06 62.51 41.57 7.21 -2.12 -13.00

The cash conversion cycle of WEC Energy Group Inc has shown fluctuations over the past few quarters. In Q4 2023, the company's cash conversion cycle increased to 47.81 days compared to the previous quarter, indicating a longer time taken to convert investments in inventory to cash receipts from sales. This could potentially suggest inefficiencies in managing inventory or collecting receivables.

Looking further back, the cash conversion cycle in Q4 2022 was lower at 36.41 days, implying a more efficient operation in converting assets into cash. However, in Q2 2022, there was a significant increase to 16.14 days, indicating a very efficient cycle during that period.

Overall, the trend indicates some variability in the efficiency of WEC Energy Group Inc's cash conversion cycle, which may be influenced by factors such as inventory management, sales terms, and collection processes. Further analysis and investigation into the underlying drivers of these fluctuations would be necessary to understand the company's working capital management more comprehensively.