NEPCAUTIOUS

NEP Current Ratio Analysis

2.02x

Higher than 100% of Utilities sector peers

Updated 1272h ago·SEC filings & market data

Key Takeaway

The current ratio of 2.02x means that NextEra Energy Partners has $2.02 in current assets for every $1 of current liabilities, indicating it can comfortably cover its short-term obligations.

Sector Performance

100th percentile

NEP

2.02x

Sector Median

0.85x

Sector Avg

0.93x

Prior Period

1.02x(May 2026)

↑ Improving

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Deep Analysis

The current ratio of 2.02x means that NextEra Energy Partners has $2.02 in current assets for every $1 of current liabilities, indicating it can comfortably cover its short-term obligations.

This ratio sits far above the utilities sector median of 0.86x, placing the company in the 100th percentile among its peers — the highest liquidity position in the group. Trend data is not available: the year-over-year change and quarter-over-quarter change are both listed as N/A, and no historical values for the last eight quarters are provided. With a very high current ratio but no trend to show direction, the level alone suggests low near-term liquidity risk, yet the absence of trend information prevents any assessment of whether this strength is improving or eroding. The combination of an exceptionally high current ratio and missing trend data points to a stable liquidity situation, but without a trend, it does not signal a clear investment opportunity or risk factor. This metric supports the overall NEUTRAL verdict: the strong liquidity is favorable, but the lack of trend history means it cannot justify an upgrade or downgrade on its own.

Frequently Asked Questions

What does the Current Ratio tell investors about NEP?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

How does NEP's Current Ratio compare to its sector?

NEP's Current Ratio of 2.02x compares to a Utilities sector median of 0.85x, placing it in the 100th percentile.

Who are NEP's closest peers by Current Ratio?

The closest Utilities peers by Current Ratio include: AES (0.73x), PEG (0.97x), ATO (1.00x), PPL (1.00x), LNT (0.69x).

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Learn More About Current Ratio

Why Working Capital Management Matters More Than You Think

Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.