Knife River Corporation (KNF)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 281,134 | 267,442 | 57,169 | 170,658 | 262,300 | 116,159 | 68,500 | 7,218 | 221,294 |
| Short-term investments | US$ in thousands | -34 | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 370,037 | 426,103 | 378,309 | 297,230 | 347,300 | 424,967 | 384,400 | 473,155 | 286,006 |
| Cash ratio | 0.76 | 0.63 | 0.15 | 0.57 | 0.76 | 0.27 | 0.18 | 0.02 | 0.77 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($281,134K
+ $-34K)
÷ $370,037K
= 0.76
The cash ratio of Knife River Corporation has shown fluctuations over the period analyzed. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.
As of December 31, 2022, the cash ratio was 0.77, indicating that Knife River had $0.77 in cash and cash equivalents for every dollar of its short-term liabilities. This suggests a strong ability to meet its immediate financial obligations.
However, the cash ratio dropped significantly to 0.02 as of March 31, 2023, signaling a potential liquidity issue as the company had only $0.02 in cash and cash equivalents for every dollar of short-term liabilities.
Subsequently, the cash ratio improved to 0.18 by June 30, 2023, and further increased to 0.27 by September 30, 2023, demonstrating an enhanced ability to cover short-term obligations with available cash.
By December 31, 2023, the cash ratio had climbed back to 0.76, indicating a strong liquidity position once again. The trend continued with fluctuations in subsequent quarters, with the cash ratio reaching 0.76 by December 31, 2024.
Overall, while the cash ratio fluctuated throughout the period, the company managed to maintain a relatively healthy liquidity position, with certain quarters showing stronger cash reserves to cover short-term liabilities. Monitoring this ratio can provide insights into the company's ability to meet its immediate financial obligations.
Peer comparison
Dec 31, 2024