IDACORP Inc (IDA)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.41 | 1.70 | 1.55 | 1.54 | 1.58 | 2.12 | 1.57 | 1.86 | 1.26 | 1.39 | 1.54 | 1.87 | 1.83 | 1.98 | 2.03 | 2.27 | 2.23 | 2.26 | 1.85 | 1.91 |
| Quick ratio | 0.53 | 0.71 | 0.32 | 0.31 | 0.52 | 0.91 | 0.29 | 0.67 | 5.10 | 0.48 | 0.59 | 0.66 | 0.66 | 1.09 | 1.04 | 1.01 | 1.04 | 1.11 | 1.03 | 0.56 |
| Cash ratio | 0.53 | 0.71 | 0.32 | 0.31 | 0.52 | 0.91 | 0.29 | 0.67 | 5.10 | 0.48 | 0.59 | 0.66 | 0.66 | 1.09 | 1.04 | 1.01 | 1.04 | 1.11 | 1.03 | 0.56 |
Based on the provided data, the liquidity ratios of IDACORP Inc show fluctuations over the time periods reported.
The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has varied between 1.26 and 2.27. The company generally maintained a current ratio above 1, indicating that it had more current assets than current liabilities to meet its short-term obligations. However, there were periods, such as December 2021 and beyond, where the current ratio dropped below 1.5, suggesting a potential liquidity stress.
The quick ratio, a more conservative liquidity metric that excludes inventory from current assets, fluctuated between 0.29 and 5.10. The company showed some periods of strong liquidity with quick ratios above 1, indicating that it could cover its short-term obligations without relying on inventory. However, the quick ratio dropped significantly in December 2022, possibly due to a significant increase in current liabilities relative to liquid assets.
The cash ratio, which is the most stringent measure of liquidity focusing only on cash and cash equivalents, showed similar fluctuations between 0.29 and 5.10. The company appeared to have a strong ability to cover short-term obligations with cash on hand in most periods but experienced a significant increase in the cash ratio in December 2022, potentially due to a one-off event.
Overall, while IDACORP Inc generally had a solid liquidity position, it is essential to monitor the trend of these ratios over time to ensure the company can meet its short-term financial obligations effectively.
Additional liquidity measure
| 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 conversion cycle | days | 61.45 | 54.42 | 47.83 | 43.75 | 40.41 | 38.66 | 34.76 | 31.67 | 29.79 | 26.67 | 29.25 | 31.24 | 30.50 | 33.53 | 35.76 | 33.49 | 33.95 | 38.60 | 43.61 | 45.48 |
The cash conversion cycle for IDACORP Inc has exhibited a decreasing trend from 45.48 days as of March 31, 2020, to 61.45 days as of December 31, 2024. A lower cash conversion cycle generally indicates the company's ability to efficiently convert its resources into cash.
During the period analyzed, the cash conversion cycle fluctuated, with periods of decrease and increase. Notably, there was a significant improvement in the cash conversion cycle from June 30, 2022, to December 31, 2022, where it decreased from 29.25 days to 29.79 days. However, the trend reversed in the subsequent periods, with the cycle increasing steadily.
Overall, a higher cash conversion cycle could imply that IDACORP Inc may be facing challenges in managing its liquidity efficiently, leading to longer periods of tying up cash in its operations. This trend may warrant further investigation to identify the underlying reasons and potential strategies for improvement.