NEE Current Ratio Analysis

The current ratio measures a company’s ability to cover short-term obligations with short-term assets; NEE’s 0.53x means it has $0.53 in current assets for every $1.00 of current liabilities due within a year.

This is well below the sector median of 1.25x, placing NEE in the 8th percentile among peers, so most comparable companies hold more liquidity cushion. The trend direction over the last 8 quarters is N/A, and the year-over-year change is also N/A; quarter-over-quarter, the ratio declined by 1.9%, from 0.54x to 0.53x in the most recent period. A low and slightly falling current ratio points to higher short-term liquidity risk, but in a utility business with predictable cash flows, this level may still be manageable rather than a sign of distress. This metric leans toward caution and does not support an upbeat view, but it does not force a negative stance either. Overall, the 0.53x reading aligns with the NEUTRAL verdict by highlighting a weak liquidity position that is partially offset by the sector’s typical operating model.

Frequently Asked Questions