Black Hills Corporation (BKH)

Quick ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash US$ in thousands 16,100 12,500 624,800 123,000 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
Short-term investments US$ in thousands — — — — — — — — 30 — — — — — — — — 15,659 — —
Receivables US$ in thousands 522,800 295,200 316,800 474,800 368,800 313,057 349,669 649,432 525,829 349,784 366,049 532,075 339,669 262,766 270,076 391,582 285,407 242,042 247,013 343,149
Total current liabilities US$ in thousands 763,400 536,200 1,106,800 1,088,400 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
Quick ratio 0.71 0.57 0.85 0.55 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

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 fluctuated over the past few years, ranging from a low of 0.20 to a high of 0.85. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.

Analyzing the trend in the quick ratio, we can observe that there have been periods of instability, with the ratio experiencing both increases and decreases over the years. Notably, there was a significant improvement in the quick ratio from June 30, 2023, to June 30, 2024, where it reached its peak at 0.85, indicating a strong ability to cover short-term liabilities with liquid assets.

However, it is important to note that the quick ratio declined in the subsequent periods, particularly dipping to 0.20 on September 30, 2023. This might suggest potential liquidity challenges during that specific period.

Overall, the fluctuation in Black Hills Corporation's quick ratio indicates varying levels of liquidity and the company's ability to manage its short-term financial obligations. Investors and stakeholders may want to closely monitor these changes to assess the company's financial health and risk exposure.