The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Hawaiian Electric Industries's current ratio for the quarter that ended in Dec. 2023 was 28.55.
Hawaiian Electric Industries has a current ratio of 28.55. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for Hawaiian Electric Industries's Current Ratio or its related term are showing as below:
HE'
s Current Ratio Range Over the Past 10 Years
Min: 15.86 Med: 20.92 Max: 37.53
Current: 28.55
During the past 13 years, Hawaiian Electric Industries's highest Current Ratio was 37.53. The lowest was 15.86. And the median was 20.92.
HE's Current Ratio is ranked better than 99.42% of 516
companies
in the Utilities - Regulated industry
Industry Median: 1.05
vs HE: 28.55
Hawaiian Electric Industries Current Ratio Historical Data
The historical data trend for Hawaiian Electric Industries's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
Hawaiian Electric Industries Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Current Ratio
15.86
23.48
20.78
18.08
28.55
Hawaiian Electric Industries Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Current Ratio
18.08
15.76
20.41
23.36
28.55
Competitive Comparison
For the Utilities - Regulated Electric subindustry, Hawaiian Electric Industries's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Hawaiian Electric Industries Current Ratio Distribution
For the Utilities - Regulated industry and Utilities sector, Hawaiian Electric Industries's Current Ratio distribution charts can be found below:
* The bar in red indicates where Hawaiian Electric Industries's Current Ratio falls into.
Hawaiian Electric Industries Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
Hawaiian Electric Industries's Current Ratio for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Hawaiian Electric Industries (NYSE:HE) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Hawaiian Electric Industries Current Ratio Related Terms
Thank you for viewing the detailed overview of Hawaiian Electric Industries's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Hawaiian Electric Industries (Hawaiian Electric Industries) Business Description
Hawaiian Electric Industries is the parent company of three Hawaii-based regulated utilities and Hawaii's American Savings Bank. The utilities provide electricity on the five islands of Oahu, Hawaii, Maui, Molokai, and Lanai. Nearly 40% of electricity in its service territory comes from renewable energy; this portion is growing rapidly as the state has set a goal of 100% by 2045.
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