Xcel Energy Inc (XEL)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 179,000 | 129,000 | 111,000 | 166,000 | 129,000 |
| Short-term investments | US$ in thousands | — | 104,000 | 279,000 | 123,000 | 49,000 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 6,459,000 | 5,652,000 | 6,078,000 | 5,046,000 | 4,239,000 |
| Quick ratio | 0.03 | 0.04 | 0.06 | 0.06 | 0.04 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($179,000K
+ $—K
+ $—K)
÷ $6,459,000K
= 0.03
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. Looking at the data provided for Xcel Energy Inc, we observe fluctuations in the quick ratio over the years.
As of December 31, 2020, Xcel Energy Inc had a quick ratio of 0.04, indicating that for every dollar of current liabilities, the company had $0.04 of highly liquid assets available to cover those obligations. This suggests a limited ability to meet short-term liabilities using quick assets alone.
By December 31, 2021 and December 31, 2022, the quick ratio improved to 0.06, showing a slight increase in the company's ability to cover short-term obligations with liquid assets. This may indicate better liquidity management or an increase in liquid assets relative to current liabilities during these periods.
However, by December 31, 2023, we see a decrease in the quick ratio to 0.04, which could suggest a potential liquidity challenge or a change in the composition of current assets and liabilities that may require further investigation.
Further, as of December 31, 2024, the quick ratio declined further to 0.03, signaling a potential strain on Xcel Energy Inc's ability to meet short-term liabilities using only quick assets. This may raise concerns about the company's liquidity position and its ability to respond to immediate financial obligations efficiently.
Overall, the trend in Xcel Energy Inc's quick ratio highlights fluctuations in liquidity levels over the years, indicating the need for continuous monitoring and assessment of the company's liquidity management strategies and financial health.
Peer comparison
Dec 31, 2024