Knife River Corporation (KNF)

Cash ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023
Cash and cash equivalents	US$ in thousands	219,300	84,000	40,100	7,218
Short-term investments	US$ in thousands	—	—	—	—
Total current liabilities	US$ in thousands	347,271	424,967	384,356	473,155
Cash ratio		0.63	0.20	0.10	0.02

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($219,300K + $—K) ÷ $347,271K
= 0.63

The cash ratio is a measure of a company's ability to cover its short-term liabilities with its readily available cash and cash equivalents. In the case of Knife River Corporation, the cash ratio has exhibited a varying trend over the past four quarters.

As of December 31, 2023, the cash ratio stands at 0.63, indicating that the company has $0.63 in cash and cash equivalents for every $1 of short-term liabilities. This suggests a strong liquidity position, with a higher proportion of cash to cover immediate obligations.

Comparing this to the previous quarters, there is a notable improvement from the cash ratio of 0.20 on September 30, 2023, 0.10 on June 30, 2023, and 0.02 on March 31, 2023. The significant increase in the cash ratio reflects enhanced liquidity management and the ability to generate more cash reserves to meet short-term obligations.

Overall, Knife River Corporation's increasing cash ratio indicates a stronger liquidity position, which can provide stability and flexibility in managing short-term financial commitments. However, it would be essential for the company to sustain this trend and continue monitoring its cash flow dynamics to ensure the adequacy of liquid assets to cover upcoming liabilities.