Name: Cash Ratio

Definition: The cash ratio measures a company's ability to pay off all of its current liabilities immediately using only its most liquid assets: cash and cash equivalents. Unlike the current ratio and quick ratio, it excludes accounts receivable and inventory, making it the most conservative measure of liquidity.

Interpretation:
• In '2021', TLN's cash ratio was 0.08, indicating the company's ability to meet short-term obligations purely with cash. Industry average for Electric Utilities: Central in '2021' stood at 0.24.
• In '2022', TLN's cash ratio was 0.15, indicating the company's ability to meet short-term obligations purely with cash. The increase since '2021' reflects strengthening financial performance. Industry average for Electric Utilities: Central in '2022' stood at 0.34. Industry average increased by 0.10 compared to previous year.
• In '2023', TLN's cash ratio was 0.82, indicating the company's ability to meet short-term obligations purely with cash. The increase since '2022' reflects strengthening financial performance. Industry average for Electric Utilities: Central in '2023' stood at 0.35. Industry average increased by 0.01 compared to previous year.
• In '2024', TLN's cash ratio was 0.72, indicating the company's ability to meet short-term obligations purely with cash. The decline from '2023' may indicate some operational or financial challenges. Industry average for Electric Utilities: Central in '2024' stood at 0.40. Industry average increased by 0.05 compared to previous year.
Overall, TLN's cash ratio has been volatile but showed an upward trend over the past 4 years.

Formula: Cash Ratio = (Cash + Cash Equivalents) / Current Liabilities

Good Range: Generally, a cash ratio between 0.2 and 0.5 is considered healthy for most industries.