Black Hills Corporation (BKH)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	742,300	826,600	1,071,700	808,133	493,291
Total current liabilities	US$ in thousands	763,400	1,185,100	1,666,700	901,713	696,533
Current ratio		0.97	0.70	0.64	0.90	0.71

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $742,300K ÷ $763,400K
= 0.97

The current ratio of Black Hills Corporation has shown some fluctuations over the years as follows:

- As of December 31, 2020, the current ratio was 0.71, indicating the company might have had difficulties meeting its short-term obligations with its current assets during that period.

- By December 31, 2021, the current ratio improved to 0.90, suggesting a better ability to cover its short-term liabilities with current assets.

- However, by December 31, 2022, the current ratio declined to 0.64, signaling a potential strain on the company's liquidity and ability to settle its short-term debts.

- The ratio slightly recovered by December 31, 2023, reaching 0.70, yet remaining relatively low.

- As of the most recent data on December 31, 2024, the current ratio increased significantly to 0.97, indicating a stronger financial position with better short-term liquidity.

In conclusion, the company experienced fluctuations in its current ratio over the years, reflecting varying levels of liquidity and ability to fulfill short-term obligations. It is essential for Black Hills Corporation to maintain a healthy current ratio to ensure financial stability and meet its short-term financial commitments effectively.