MDU Resources Group Inc (MDU)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,363,720 | 2,011,750 | 1,550,940 | 1,337,350 | 1,297,700 |
| Total current liabilities | US$ in thousands | 1,075,730 | 1,479,600 | 1,092,240 | 963,522 | 866,427 |
| Current ratio | 1.27 | 1.36 | 1.42 | 1.39 | 1.50 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,363,720K ÷ $1,075,730K
= 1.27
The current ratio of MDU Resources Group Inc has been showing a downward trend over the past five years, decreasing from 1.50 in 2019 to 1.27 in 2023. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities, suggesting that it is in a strong position to meet its short-term obligations.
However, the decreasing trend in MDU Resources' current ratio raises some concerns as it may indicate a weakening liquidity position over time. A lower current ratio could imply potential difficulties in meeting short-term obligations such as paying bills and servicing debt, which could be a red flag for investors and creditors.
It is important for the company to closely monitor its liquidity position and take necessary steps to improve its current ratio to ensure financial stability and mitigate liquidity risks in the future.
Peer comparison
Dec 31, 2023