Xcel Energy Inc (XEL)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,069,000 | 5,144,000 | 4,239,000 | 3,275,000 | 3,113,000 |
| Total current liabilities | US$ in thousands | 5,652,000 | 6,078,000 | 5,046,000 | 4,239,000 | 4,568,000 |
| Current ratio | 0.72 | 0.85 | 0.84 | 0.77 | 0.68 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,069,000K ÷ $5,652,000K
= 0.72
The current ratio of Xcel Energy, Inc. has shown varying trends over the past five years. The ratio indicates the company's ability to meet its short-term obligations with its current assets.
In 2023, the current ratio decreased to 0.72 from 0.85 in 2022, indicating a decline in the company's short-term liquidity position. This decrease suggests that Xcel Energy may have had difficulties in meeting its current liabilities with its current assets during the year.
Comparing 2023 to the current ratio in 2021 and 2020, where the ratios were 0.84 and 0.77 respectively, the company's liquidity position appears to have weakened further. This suggests a potential deterioration in the company's ability to cover its short-term obligations with its current assets.
However, the current ratio in 2023 is still higher than that of 2019, where it was 0.68. This indicates that despite the recent decline, Xcel Energy's liquidity position has improved compared to five years ago.
In conclusion, Xcel Energy, Inc. faces challenges in maintaining a strong liquidity position, as indicated by the declining trend in its current ratio over the past few years. Management should closely monitor the company's current asset levels relative to its current liabilities to ensure adequate liquidity for ongoing operations and financial stability.
Peer comparison
Dec 31, 2023