Black Hills Corporation (BKH)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	826,600	1,071,700	808,133	493,291	473,184
Total current liabilities	US$ in thousands	1,185,100	1,666,700	901,713	696,533	811,294
Current ratio		0.70	0.64	0.90	0.71	0.58

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $826,600K ÷ $1,185,100K
= 0.70

The current ratio of Black Hills Corporation has fluctuated over the past five years, ranging from 0.58 to 0.90. In 2023, the current ratio stands at 0.70, which indicates that the company may face challenges meeting its short-term financial obligations with its current assets.

Comparing the current ratio to previous years, we observe that it has improved from the low of 0.58 in 2019 and 2020 to the highest level of 0.90 in 2021 before decreasing slightly in 2022 and 2023. Despite these fluctuations, the current ratio remains below 1.0 in all years, suggesting that Black Hills Corporation may have difficulty covering its short-term liabilities solely with its current assets.

Overall, the trend in the current ratio indicates that Black Hills Corporation has made some progress in managing its short-term liquidity, but further improvements may be necessary to enhance the company's ability to meet its current obligations effectively.