Black Hills Corporation (BKH)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	16,100	86,600	21,400	8,921	6,356
Short-term investments	US$ in thousands	—	—	30	—	—
Receivables	US$ in thousands	522,800	368,800	525,829	339,669	285,407
Total current liabilities	US$ in thousands	763,400	1,185,100	1,666,700	901,713	696,533
Quick ratio		0.71	0.38	0.33	0.39	0.42

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($16,100K + $—K + $522,800K) ÷ $763,400K
= 0.71

The quick ratio of Black Hills Corporation has shown a fluctuating trend over the past five years. As of December 31, 2020, the quick ratio was at 0.42, indicating that the company had $0.42 in liquid assets available to cover each dollar of current liabilities. However, by the end of 2021, the quick ratio had decreased to 0.39, suggesting a potential decrease in the company's ability to meet its short-term obligations without relying on inventory.

Furthermore, the quick ratio continued to decline to 0.33 by the end of 2022, signaling a further weakening of the company's liquidity position. However, there was a slight improvement in the quick ratio in 2023, reaching 0.38, indicating a modest recovery in the company's ability to meet its short-term obligations.

The most significant improvement was observed by the end of 2024, as the quick ratio surged to 0.71. This substantial increase suggests that Black Hills Corporation significantly improved its liquidity position, with $0.71 in liquid assets available for every dollar of current liabilities. Overall, while the quick ratio has shown variability over the years, the improvement in 2024 should be noted as a positive development in the company's liquidity management.