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.