Black Hills Corporation (BKH)

Current 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
Total current assets	US$ in thousands	826,600	1,240,270	802,328	918,318	1,071,700	849,248	760,427	849,308	808,133	627,726	571,739	578,615	493,291	403,657	414,105	489,673	473,184	377,421	369,673	484,570
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
Current ratio		0.70	0.77	0.82	0.88	0.64	0.88	0.97	1.07	0.90	0.83	0.46	0.47	0.71	0.79	1.08	0.68	0.58	0.55	0.76	0.82

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 shown a fluctuating trend over the past eight quarters. The current ratio indicates the company's ability to meet its short-term obligations with its current assets. A higher ratio suggests that the company is more capable of covering its short-term liabilities.

In Q1 2022, the current ratio was 1.07, indicating a strong ability to cover short-term obligations. However, the ratio declined in subsequent quarters, reaching a low of 0.70 in Q4 2023. This decreasing trend raises concerns about the company's liquidity position.

The current ratio of below 1 in Q4 2023 implies that Black Hills Corporation may face challenges in meeting its current liabilities with available current assets. It is essential for the company to closely monitor its liquidity position and take necessary steps to improve its current ratio to ensure financial stability and meet its short-term obligations effectively.