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.
Peer comparison
Dec 31, 2023