IDACORP Inc (IDA)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 1.51 | 2.08 | 2.03 | 2.11 |
| Quick ratio | 0.92 | 1.41 | 0.79 | 1.06 | 0.77 | 0.97 | 1.00 | 1.18 | 1.18 | 1.38 | 1.37 | 1.50 | 1.55 | 1.67 | 1.49 | 1.23 | 0.95 | 1.53 | 1.46 | 1.53 |
| Cash ratio | 0.58 | 0.97 | 0.36 | 0.73 | 0.39 | 0.53 | 0.59 | 0.74 | 0.66 | 0.87 | 0.79 | 1.01 | 1.04 | 1.11 | 1.13 | 0.74 | 0.58 | 1.01 | 0.93 | 0.98 |
Looking at the liquidity ratios of Idacorp, Inc. over the past eight quarters, we observe fluctuations in the current, quick, and cash ratios.
The current ratio, a measure of the company's ability to cover its short-term obligations with its current assets, has shown variability over the quarters, ranging from a low of 1.26 in Q4 2022 to a high of 2.12 in Q3 2023. The ratio has generally been above 1, indicating that Idacorp has been able to meet its short-term liabilities with its current assets, though the variability suggests some uncertainty in the company's liquidity position.
The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has also exhibited fluctuations. The quick ratio has ranged from 1.07 in Q4 2022 to 1.81 in Q3 2023, showing a similar trend of variability as the current ratio. The quick ratio values generally indicate the company's ability to cover its short-term obligations without relying on the sale of inventory.
The cash ratio, the most stringent measure of liquidity as it only considers cash and cash equivalents, has displayed a similar pattern of variability. Ranging from 0.59 in Q4 2022 to 1.29 in Q3 2023, the cash ratio values suggest that Idacorp has had varying levels of cash available to cover its immediate liabilities.
Overall, the liquidity ratios of Idacorp, Inc. show fluctuating levels of liquidity over the past eight quarters. While the company has generally been able to meet its short-term obligations with its current assets, the variability in the ratios indicates a degree of uncertainty in Idacorp's liquidity position. This variability should be monitored closely to ensure the company can manage its short-term financial obligations effectively.
Additional liquidity measure
| 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 conversion cycle | days | -45,816.92 | 50.73 | -145,175.29 | -23,923.38 | -61,054.29 | -123,693.17 | -46,545.53 | -2,719.52 | -3,085.30 | -903.30 | -496.47 | 670.95 | -989.67 | 85.59 | 323.15 | 470.58 | 70.08 | 280.04 | 293.36 | 225.66 |
The cash conversion cycle of Idacorp, Inc. has shown fluctuation in recent quarters. In Q4 2023, the company's cash conversion cycle was negative at -52.56 days, indicating that the company was able to convert its investments in inventory and accounts receivable into cash quickly. However, in the previous quarter, Q3 2023, the cash conversion cycle increased to 4.81 days, suggesting a slower conversion of resources into cash.
Comparing Q4 2023 to the same quarter in the previous year, Q4 2022, there has been an improvement, as the cash conversion cycle was more efficient in 2023. It is notable that in Q2 and Q3 of 2022, the company had negative cash conversion cycles, indicating a very efficient management of working capital during those periods.
Overall, the company's recent cash conversion cycle performance shows variability, with some quarters demonstrating efficient management of working capital and others showing a slower conversion of assets into cash. Further analysis and monitoring are recommended to understand the factors influencing these fluctuations and to implement strategies to optimize the cash conversion cycle for improved liquidity and operational efficiency.