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.
Peer comparison
Dec 31, 2023