EIX Quick Ratio Analysis

The quick ratio measures a company’s ability to cover short-term liabilities with its most liquid assets; at 0.18x, EIX has only $0.18 of cash and equivalents for every $1 of current debt, signaling very low short-term liquidity.

This ratio sits at the 5th percentile among sector peers, well below the sector median of 0.73x, meaning the vast majority of competitors maintain far stronger liquidity positions. The year-over-year change is not available, but the quarter-over-quarter decline of -37.9% — from 0.29x to 0.18x — shows a sharp deterioration in the most recent period. A quick ratio this low, combined with a rapid QoQ drop, points to elevated near-term solvency risk, as the company may struggle to meet upcoming obligations without raising capital or slowing operations. While the overall verdict on the stock is NEUTRAL, this metric contradicts that stance by highlighting a clear vulnerability that could pressure the company’s financial stability.

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