MDU Resources Group Inc (MDU)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 0.98 | 1.27 | 1.36 | 1.42 | 1.39 |
| Quick ratio | 0.10 | 0.05 | 0.05 | 0.05 | 0.06 |
| Cash ratio | 0.10 | 0.05 | 0.05 | 0.05 | 0.06 |
MDU Resources Group Inc's current ratio has displayed a stable trend over the past five years, starting at 1.39 in 2020, increasing to 1.42 in 2021, but then slightly declining to 1.36 in 2022, further dropping to 1.27 in 2023, and falling significantly to 0.98 in 2024. This indicates a potential decline in the company's ability to cover its short-term obligations with its current assets.
The quick ratio has shown a consistently low level of liquidity, remaining at very low levels throughout the five-year period. Starting at 0.06 in 2020 and staying constant at 0.05 from 2021 to 2023, the quick ratio then unexpectedly increased to 0.10 in 2024. This suggests that the company may face difficulties meeting its short-term liabilities with its most liquid assets.
In terms of the cash ratio, MDU Resources Group Inc also exhibited a consistently low level of cash reserves relative to its current liabilities over the five-year period. The cash ratio remained stable at 0.06 from 2020 to 2022 and then unexpectedly rose to 0.10 in 2024. This indicates that the company may have improved its cash holdings in 2024 compared to the previous years.
Overall, the liquidity ratios suggest that MDU Resources Group Inc may have encountered challenges in maintaining adequate liquidity to cover its short-term obligations, especially in 2024 where the current and quick ratios experienced significant declines. However, the increase in the cash ratio in 2024 could signify an improvement in the company's cash position.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 13.83 | 7.90 | 24.27 | 26.42 | 23.69 |
The cash conversion cycle of MDU Resources Group Inc has shown fluctuations over the years based on the data provided.
On December 31, 2020, the company had a cash conversion cycle of 23.69 days, which increased to 26.42 days by December 31, 2021. Subsequently, the cycle decreased to 24.27 days by December 31, 2022.
The most significant improvement occurred by December 31, 2023, where the cash conversion cycle reduced significantly to 7.90 days. However, by December 31, 2024, there was a slight increase to 13.83 days compared to the previous year.
Overall, the trend in the cash conversion cycle of MDU Resources Group Inc indicates fluctuations in the efficiency of its working capital management over the years, reflecting changes in the company's ability to efficiently convert its investments in inventory and accounts receivable into cash.