Black Hills Corporation (BKH)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	86,600	21,400	8,921	6,356	9,777
Short-term investments	US$ in thousands	—	30	—	—	—
Total current liabilities	US$ in thousands	1,185,100	1,666,700	901,713	696,533	811,294
Cash ratio		0.07	0.01	0.01	0.01	0.01

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($86,600K + $—K) ÷ $1,185,100K
= 0.07

The cash ratio of Black Hills Corporation has shown variability over the past five years, ranging from 0.10 to 0.35. This ratio provides insight into the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover its short-term obligations.

In 2023, the cash ratio improved to 0.25 compared to the previous year, indicating a better liquidity position. However, compared to 2021 when the ratio was 0.35, the current ratio is slightly lower. This could be due to changes in the company's cash management practices or investment strategies.

It is important for investors and stakeholders to monitor the cash ratio trend over time to assess the company's liquidity position and financial health. Overall, a cash ratio of 0.25 suggests that Black Hills Corporation has a moderate ability to meet its short-term obligations with its available cash reserves.