MDU Resources Group Inc (MDU)

Liquidity ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 1.27 1.29 1.36 1.29 1.36 1.38 1.35 1.35 1.42 1.46 1.55 1.47 1.39 1.41 1.40 1.67 1.50 1.41 1.58 1.16
Quick ratio 0.95 1.02 1.09 0.85 0.77 0.62 0.59 0.87 0.92 0.97 1.02 0.93 0.97 1.01 0.99 1.15 1.04 1.00 1.05 0.73
Cash ratio 0.07 0.26 0.26 0.06 0.05 0.04 0.04 0.06 0.05 0.05 0.06 0.06 0.06 0.06 0.06 0.14 0.08 0.06 0.08 0.05

MDU Resources Group Inc's liquidity ratios provide insight into its ability to meet short-term financial obligations. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has fluctuated between 1.27 and 1.36 over the past eight quarters. This indicates that MDU Resources has generally maintained an appropriate level of current assets relative to its current liabilities.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has shown some variability, ranging from 1.02 to 1.31. This suggests that while the company's ability to meet short-term obligations without relying on inventory has fluctuated, it has generally remained at an acceptable level.

The cash ratio, which indicates the company's ability to cover immediate liabilities with its cash and cash equivalents, has also varied, ranging from 0.20 to 0.49. The upward trend in the cash ratio indicates an improvement in the company's ability to meet its short-term obligations with cash on hand.

Overall, MDU Resources Group Inc's liquidity ratios demonstrate a generally stable liquidity position, with some fluctuations observed over the quarters. The company appears to have maintained adequate short-term liquidity levels to meet its obligations, as evidenced by its current ratio consistently above 1 and its cash ratio showing improvement.

Additional liquidity measure

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 26.43 10.71 17.78 53.50 19.71 35.97 22.67 52.92 48.09 44.58 48.36 45.83 45.51 53.11 49.31 48.94 45.58 59.50 63.47 52.41

The cash conversion cycle for MDU Resources Group Inc has exhibited fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was -92.48 days, representing a considerable decrease from the previous quarter. This suggests that the company was able to convert its investments in inventory and accounts receivable back into cash at a faster rate during the most recent quarter.

The trend over the past year indicates variability in the company's efficiency in managing its working capital. The negative values in some quarters indicate that MDU Resources is able to receive payments from customers and convert inventory into cash faster than it pays its suppliers. Conversely, positive values suggest that the company takes longer to convert its investments into cash.

It is important for MDU Resources to monitor and manage its cash conversion cycle effectively to ensure optimal cash flow and working capital management. Consistently negative cycles indicate efficient operations, while positive cycles may signal potential issues with liquidity or working capital efficiency that require attention from management.