Black Hills Corporation (BKH)

Quick 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
Cash	US$ in thousands	86,600	594	152,581	39,365	21,400	11,693	10,216	16,330	8,921	10,181	1,175	13,442	6,356	6,955	31,608	54,137	9,777	13,087	6,642	12,225
Short-term investments	US$ in thousands	—	—	—	—	30	—	—	—	—	—	—	—	—	15,659	—	—	—	—	—	—
Receivables	US$ in thousands	368,800	313,057	349,669	649,432	525,829	349,784	366,049	532,075	339,669	262,766	270,076	391,582	285,407	242,042	247,013	343,149	272,251	217,854	235,386	391,552
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
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

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($86,600K + $—K + $368,800K) ÷ $1,185,100K
= 0.38

The quick ratio of Black Hills Corporation has shown fluctuations over the past eight quarters, ranging from a low of 0.52 in Q4 2022 to a high of 0.93 in Q1 2022. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations, with the most recent value of 0.56 in Q4 2023 suggesting that Black Hills Corporation may face challenges in this area. However, it is important to consider the industry norms and the company's historical performance to provide a more accurate assessment of its liquidity position.

The trend of the quick ratio over the past quarters indicates that Black Hills Corporation has experienced some fluctuation in its liquidity position. Further analysis would be necessary to understand the reasons behind these fluctuations and whether they are a cause for concern or simply reflect normal variations in the company's operations. Monitoring the quick ratio over time and comparing it to industry benchmarks can provide valuable insights into the company's financial health and liquidity management.