Black Hills Corporation (BKH)

Liquidity ratios

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
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
Quick ratio 0.38 0.20 0.51 0.66 0.33 0.37 0.48 0.69 0.39 0.36 0.22 0.33 0.42 0.51 0.72 0.55 0.35 0.33 0.50 0.68
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

Black Hills Corporation's liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio has been declining over the past four quarters, from 0.88 in Q1 2023 to 0.70 in Q4 2023. This trend suggests a potential decrease in the company's ability to cover its current liabilities with current assets. Similarly, the quick ratio has also decreased over the same period, from 0.75 in Q1 2023 to 0.56 in Q4 2023, indicating a decrease in the company's ability to meet its short-term obligations using its most liquid assets.

The cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents, has fluctuated over the past eight quarters. It decreased from 0.42 in Q1 2022 to 0.2 in Q4 2022 before rebounding to 0.51 in Q3 2023 and then declining again to 0.25 in Q4 2023. This indicates some volatility in Black Hills Corporation's cash position.

Overall, the declining trend in current and quick ratios, along with the fluctuating cash ratio, suggests that Black Hills Corporation may be experiencing challenges in maintaining sufficient liquidity to meet its short-term financial obligations. Further analysis of the company's cash management practices and working capital may be warranted to address these liquidity concerns.

Additional liquidity measure

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 conversion cycle days -72.25 269.19 65.87 -130.10 -450.51 247.99 -118.42 -268.01 -315.37 51.21 53.60 79.70 61.39 -19.13 -26.40 -200.91 -432.32 -94.09 -257.55 -496.11

The cash conversion cycle of Black Hills Corporation has shown fluctuation over the past 8 quarters. The trend indicates that the company's efficiency in managing its operating cycle has varied.

In Q4 2023, the cash conversion cycle was 48.27 days, slightly lower compared to the previous quarter, suggesting that the company was able to convert its investments in raw materials and other inputs into cash more quickly during this period. However, the efficiency was not as high as it was in Q2 2023, where the cycle was only 40.25 days.

Comparing the latest quarter to the same period in the prior year, Q4 2022, there has been an improvement in the cash conversion cycle from 44.78 days to 48.27 days. This indicates that the company may have become slightly less efficient in managing its cash flow cycle over the past year.

Overall, the cash conversion cycle for Black Hills Corporation has shown some variability, suggesting that the company's ability to efficiently manage its working capital and operating cycle may be subject to changes in business conditions and operational efficiency. Further analysis would be needed to understand the specific factors driving these fluctuations and to assess the company's overall financial health and performance.