Knife River Corporation (KNF)

Quick ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023
Cash	US$ in thousands	219,300	84,000	40,100	7,218
Short-term investments	US$ in thousands	—	—	—	—
Receivables	US$ in thousands	266,785	491,866	418,620	174,590
Total current liabilities	US$ in thousands	347,271	424,967	384,356	473,155
Quick ratio		1.40	1.36	1.19	0.38

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($219,300K + $—K + $266,785K) ÷ $347,271K
= 1.40

The quick ratio of Knife River Corporation has been fluctuating over the past four quarters. It stood at 1.40 on December 31, 2023, indicating that the company had $1.40 of liquid assets to cover each $1 of current liabilities. This suggests a healthy liquidity position. However, the quick ratio decreased to 1.36 on September 30, 2023, and further declined to 1.19 on June 30, 2023, which could raise concerns about the company's ability to meet its short-term obligations with its liquid assets.

The sharp drop in the quick ratio to 0.38 on March 31, 2023, is particularly alarming, indicating a significant liquidity strain for Knife River Corporation during that period. This decline could potentially reflect issues such as a decrease in cash reserves or an increase in current liabilities.

Overall, while the quick ratio has shown fluctuations, with periods of both strength and weakness, it is essential for Knife River Corporation to closely monitor and manage its liquidity position to ensure it can meet its short-term financial obligations effectively.