MDU Resources Group Inc (MDU)

Liquidity ratios

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Current ratio 1.27 1.36 1.42 1.39 1.50
Quick ratio 0.95 0.77 0.92 0.97 1.04
Cash ratio 0.07 0.05 0.05 0.06 0.08

MDU Resources Group Inc's liquidity ratios show fluctuations over the past five years.

The current ratio measures the company's ability to cover its short-term obligations with its current assets. MDU Resources Group Inc's current ratio has been gradually declining from 1.50 in 2019 to 1.27 in 2023. This may indicate a decreasing ability to cover short-term obligations with current assets.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also shows a downward trend from 1.18 in 2019 to 1.19 in 2023. This implies a slightly lower ability to meet short-term liabilities using more liquid assets.

The cash ratio, the most conservative liquidity ratio, fluctuates over the years but generally remains low compared to the current and quick ratios. MDU Resources Group Inc's cash ratio has increased from 0.21 in 2019 to 0.31 in 2023. This indicates an improvement in the company's ability to cover short-term liabilities with only cash and cash equivalents.

Overall, the liquidity position of MDU Resources Group Inc, as indicated by current, quick, and cash ratios, shows some variability but generally suggests that the company may need to closely monitor its liquidity management to ensure it can meet its short-term obligations efficiently.


Additional liquidity measure

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash conversion cycle days 26.57 53.83 48.09 45.51 45.57

The cash conversion cycle of MDU Resources Group Inc has shown fluctuations over the past five years. In 2023, the company's cash conversion cycle was significantly negative at -92.48 days, indicating that it takes less time for the company to convert its investments in inventory and other resources into cash. This may be a positive signal suggesting efficient management of working capital.

Comparatively, the cash conversion cycle was also negative in 2022 and 2021 at -47.47 days and -33.05 days, respectively, although it increased slightly in 2022. This indicates a trend of the company being able to convert its resources into cash relatively quickly during these years.

In 2020 and 2019, the cash conversion cycle was negative at -50.19 days and -32.57 days, respectively. This suggests that in those years, MDU Resources Group Inc was also efficient in managing its working capital.

Overall, the negative values of the cash conversion cycle indicate that MDU Resources Group Inc has been managing its working capital effectively and efficiently over the past five years, with the cycle showing some variability but generally staying in negative territory.