Allete Inc (ALE)

Quick ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash	US$ in thousands	71,900	125,500	47,900	29,900	36,400	42,100	74,600	60,100	45,100	59,000	62,500	159,000	44,300	79,000	25,700	67,000	69,300	100,300	203,100	353,300
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	317,000	—	301,000	301,000	291,000	—	—	—	—	—	—
Receivables	US$ in thousands	161,000	119,600	123,200	120,300	167,100	120,500	116,200	118,400	148,400	110,200	105,200	113,500	132,800	92,000	85,800	99,400	116,500	85,100	87,400	98,900
Total current liabilities	US$ in thousands	377,600	413,500	380,300	464,400	716,200	706,000	709,000	556,600	543,400	646,000	595,500	574,900	459,600	630,000	727,700	623,100	507,400	483,300	296,600	322,400
Quick ratio		0.62	0.59	0.45	0.32	0.28	0.23	0.27	0.32	0.36	0.75	0.28	1.00	1.04	0.73	0.15	0.27	0.37	0.38	0.98	1.40

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($71,900K + $—K + $161,000K) ÷ $377,600K
= 0.62

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. Allete, Inc.'s quick ratio has shown varying levels over the past eight quarters, ranging from 0.37 to 0.78.

In Q4 2022, the quick ratio was 0.37, indicating that Allete may have had difficulty meeting its short-term obligations with its current liquid assets. However, the company's quick ratio improved in subsequent quarters, reaching a peak of 0.78 in Q4 2023. This could suggest that Allete strengthened its ability to cover its short-term liabilities with readily available assets.

Despite the improvement in recent quarters, it is worth noting that the quick ratio dipped to 0.48 in Q1 2023 before rebounding to 0.78 in Q4 2023. This fluctuation indicates some volatility in Allete's liquidity position over the observation period.

Overall, while the quick ratio has shown improvement and variability, investors and stakeholders may want to monitor Allete's liquidity position closely to ensure the company can meet its short-term financial obligations effectively.