WEC Energy Group Inc (WEC)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 4,841,900 | 5,114,800 | 4,611,000 | 3,753,000 | 4,148,100 |
| Quick ratio | 0.00 | 0.01 | 0.42 | 0.48 | 0.43 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($9,800K
+ $—K
+ $—K)
÷ $4,841,900K
= 0.00
The quick ratio of WEC Energy Group Inc has shown varying trends over the past five years. As of December 31, 2020, the quick ratio was 0.43, indicating that the company had $0.43 in liquid assets available to cover each dollar of current liabilities. By December 31, 2021, the quick ratio improved to 0.48, suggesting a better ability to meet short-term obligations.
However, the quick ratio dropped to 0.42 by the end of 2022, which could be a cause for concern as it indicates a slight decrease in liquidity. The ratio took a sharp decline to 0.01 by December 31, 2023, and further reduced to 0.00 by December 31, 2024. These low quick ratios suggest that the company may face difficulty in covering its current liabilities with its most liquid assets.
Overall, the downward trend in the quick ratio over the years raises questions about WEC Energy Group Inc's short-term liquidity position and ability to meet its immediate financial obligations. It would be prudent for stakeholders to closely monitor the company's liquidity management strategies in the upcoming periods to ensure financial stability.
Peer comparison
Dec 31, 2024