Black Hills Corporation (BKH)

Cash 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 and cash equivalents	US$ in thousands	86,600	594	152,581	39,365	21,400	11,693	10,216	16,330	8,921	10,181	1,175	13,442	6,356	6,955	31,608	54,137	9,777	13,087	6,642	12,225
Short-term investments	US$ in thousands	—	—	—	—	30	—	—	—	—	—	—	—	—	15,659	—	—	—	—	—	—
Total current liabilities	US$ in thousands	1,185,100	1,602,670	977,860	1,038,910	1,666,700	969,597	785,180	794,724	901,713	758,117	1,230,530	1,229,600	696,533	513,932	384,965	719,854	811,294	691,124	488,401	591,015
Cash ratio		0.07	0.00	0.16	0.04	0.01	0.01	0.01	0.02	0.01	0.01	0.00	0.01	0.01	0.04	0.08	0.08	0.01	0.02	0.01	0.02

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 fluctuated over the past eight quarters, ranging from a low of 0.20 in Q4 2022 to a high of 0.51 in Q3 2023. The cash ratio represents the proportion of cash and cash equivalents to current liabilities, indicating the company's ability to cover its short-term obligations with liquid assets.

A higher cash ratio suggests that the company is more capable of meeting its short-term financial obligations without relying on external sources of funding. Conversely, a lower cash ratio may indicate potential liquidity challenges.

The trend in Black Hills Corporation's cash ratio shows some volatility, with Q3 2023 recording the highest ratio and Q4 2022 the lowest. The ratios for Q2 and Q3 of 2022 were above 0.4, indicating a relatively strong liquidity position during that period.

Overall, the company's cash ratio demonstrates fluctuations in its ability to cover short-term liabilities with cash and cash equivalents. It is important for investors and stakeholders to monitor these trends to assess the company's liquidity position and financial health.