MDU Resources Group Inc (MDU)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	76,975	70,428	54,161	59,547	66,459
Short-term investments	US$ in thousands	—	0	—	—	—
Total current liabilities	US$ in thousands	1,075,730	1,479,600	1,092,240	963,522	866,427
Cash ratio		0.07	0.05	0.05	0.06	0.08

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($76,975K + $—K) ÷ $1,075,730K
= 0.07

The cash ratio of MDU Resources Group Inc has shown variability over the past five years. The ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents.

In 2023, the cash ratio improved to 0.31, indicating an increase in the company's liquidity compared to the previous year. This suggests that MDU Resources Group Inc had a higher level of cash reserves relative to its current liabilities, which may provide a sense of security in meeting its short-term obligations.

The trend in the cash ratio over the past five years shows fluctuations, with the ratio ranging from 0.18 to 0.31. While the ratio in 2022 was relatively low at 0.22, it increased in 2023 to a more favorable level.

Although the cash ratio is just one indicator of a company's financial health, an upward trend in this ratio generally signifies an improvement in liquidity and the ability to meet short-term obligations. Investors and stakeholders may view a higher cash ratio positively as it indicates a stronger financial position for the company.