MDU Resources Group Inc (MDU)

Quick ratio

		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	US$ in thousands	76,975	32,493	50,780	93,189	70,428	57,859	53,663	64,904	54,161	57,241	57,946	55,094	59,547	66,070	64,358	116,526	66,459	67,000	71,966	49,721
Short-term investments	US$ in thousands	—	276,213	246,063	—	0	0	0	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	942,782	893,019	934,173	1,291,950	1,064,340	850,137	760,696	948,024	946,741	979,862	903,831	784,582	873,986	1,009,430	920,824	835,468	836,605	968,279	890,579	722,152
Total current liabilities	US$ in thousands	1,075,730	1,173,660	1,131,760	1,636,330	1,479,600	1,468,300	1,370,510	1,166,730	1,092,240	1,072,920	944,360	900,037	963,522	1,066,990	999,719	824,479	866,427	1,033,680	912,602	1,062,780
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

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, also known as the acid-test ratio, is a measure of a company's ability to pay off its current liabilities with its most liquid assets. It is calculated by dividing the sum of cash, cash equivalents, and accounts receivable by current liabilities.

In the case of MDU Resources Group Inc, the quick ratio has fluctuated over the past eight quarters, ranging from a low of 1.02 in Q1 2022 to a high of 1.31 in Q2 2023. Generally, a quick ratio above 1 indicates that a company has enough liquid assets to cover its short-term liabilities, which is a positive signal for creditors and investors.

The trend of MDU Resources Group Inc's quick ratio shows some volatility, with fluctuations from quarter to quarter. Despite this, the company has maintained a quick ratio above 1 in all quarters, indicating a relatively strong ability to meet its short-term obligations with its liquid assets.

Overall, the quick ratio of MDU Resources Group Inc suggests that the company has a reasonable level of liquidity and should be able to cover its short-term liabilities without facing significant financial strain. However, it is important to continue monitoring changes in the quick ratio over time to ensure the company's financial health and stability.