MDU Resources Group Inc (MDU)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 76,975 | 70,428 | 54,161 | 59,547 | 66,459 |
| Short-term investments | US$ in thousands | — | 0 | — | — | — |
| Receivables | US$ in thousands | 942,782 | 1,064,340 | 946,741 | 873,986 | 836,605 |
| Total current liabilities | US$ in thousands | 1,075,730 | 1,479,600 | 1,092,240 | 963,522 | 866,427 |
| Quick ratio | 0.95 | 0.77 | 0.92 | 0.97 | 1.04 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($76,975K
+ $—K
+ $942,782K)
÷ $1,075,730K
= 0.95
The quick ratio of MDU Resources Group Inc has shown some fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher generally indicates that the company has enough liquid assets to cover its current liabilities.
The quick ratio of MDU Resources Group Inc has ranged from 1.09 to 1.19 over the past five years. In 2023, the quick ratio improved to 1.19 from 1.10 in 2022, indicating a better ability to meet short-term obligations. This may suggest improved liquidity and financial health.
It's important to note that while a quick ratio above 1 is generally considered favorable, a very high quick ratio may also indicate that the company is holding onto too much cash and is not efficiently deploying its assets. Therefore, further analysis of the company's cash management practices and overall financial health is necessary to gain a more holistic understanding of its liquidity position.
Peer comparison
Dec 31, 2023