IDACORP Inc (IDA)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	368,865	327,429	177,577	215,243	275,116
Short-term investments	US$ in thousands	—	-17	2,618,260	0	25,000
Total current liabilities	US$ in thousands	700,801	634,076	548,565	325,624	287,571
Cash ratio		0.53	0.52	5.10	0.66	1.04

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($368,865K + $—K) ÷ $700,801K
= 0.53

The cash ratio of IDACORP Inc decreased from 1.04 as of December 31, 2020, to 0.66 as of December 31, 2021, indicating a lower ability to cover short-term liabilities solely with cash and cash equivalents. However, there was a significant improvement in the cash ratio to 5.10 as of December 31, 2022, suggesting a substantial increase in the company's liquidity position. This high cash ratio may signify a conservative approach to managing liquidity or a temporary spike in cash holdings.

Subsequently, the cash ratio decreased to 0.52 as of December 31, 2023, which could raise concerns about the company's ability to meet immediate obligations with available cash resources. The ratio then slightly increased to 0.53 as of December 31, 2024, still indicating a relatively low level of cash to cover short-term liabilities.

Overall, fluctuations in the cash ratio of IDACORP Inc over the years reflect changes in the company's cash position and its ability to meet short-term financial commitments. An upward trend in the cash ratio indicates improved liquidity, while a downward trend may raise questions about the company's short-term financial health.