Xcel Energy Inc (XEL)

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 0.72 0.87 0.80 0.75 0.85 1.04 1.00 0.75 0.84 0.78 0.84 0.88 0.77 0.87 0.80 0.51 0.68 0.72 0.58 0.66
Quick ratio 0.27 0.39 0.31 0.27 0.29 0.36 0.40 0.24 0.23 0.88 0.98 1.06 0.98 1.05 0.44 0.19 0.24 0.34 0.22 0.24
Cash ratio 0.04 0.15 0.10 0.04 0.06 0.12 0.18 0.02 0.03 0.71 0.79 0.86 0.76 0.84 0.30 0.04 0.05 0.17 0.07 0.02

Xcel Energy, Inc.'s liquidity ratios have shown some fluctuations over the past eight quarters. Starting with the current ratio, which measures the company's ability to cover its short-term obligations with its current assets, we observe a downward trend from 0.85 in Q4 2022 to 0.72 in Q4 2023. This indicates a potential deterioration in the company's liquidity position.

Moving on to the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, we see a similar declining trend from 0.71 in Q4 2022 to 0.59 in Q4 2023. This suggests that Xcel Energy may be facing challenges in meeting its short-term obligations without relying on inventory.

Lastly, the cash ratio, which focuses solely on the most liquid assets (cash and cash equivalents) to cover short-term liabilities, also shows a decrease from 0.31 in Q4 2022 to 0.21 in Q4 2023. This indicates that Xcel Energy may have less cash on hand relative to its short-term obligations.

Overall, the downward trend in all three liquidity ratios for Xcel Energy, Inc. raises concerns about its ability to meet its short-term obligations using its current assets, quick assets, and cash reserves. Further analysis and monitoring of the company's liquidity position are recommended to assess its financial health and sustainability.

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 -346.72 -227.93 -205.38 -217.57 -299.12 -231.73 -324.06 -255.27 -272.20 -239.07 -254.42 -246.30 -234.33 -456.34 -294.61 -205.01 -315.69 -30.50 -22.20 -16.30

The cash conversion cycle of Xcel Energy, Inc. has fluctuated over the past eight quarters, with some periods reflecting negative cycles indicating efficient management of working capital. In Q4 2023, the company had a negative cash conversion cycle of -4.70 days, suggesting that it was able to convert its investments in inventory and accounts receivable into cash before having to pay its accounts payable. However, in Q1 2023 and Q2 2023, the cycle increased to 9.66 days and 8.27 days, respectively, indicating a longer time taken to convert investments into cash.

Overall, Xcel Energy, Inc. should focus on optimizing its working capital management to reduce the days in the cash conversion cycle, ensuring efficient cash flow and operational effectiveness. By monitoring and improving the efficiency of its inventory and accounts receivable turnover, as well as managing accounts payable effectively, the company can enhance its cash conversion cycle and potentially improve its overall financial performance.