MGE Energy Inc (MGEE)
Cash 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 and cash equivalents | US$ in thousands | 11,140 | 11,269 | 16,507 | 14,708 | 11,604 | 10,615 | 22,807 | 26,374 | 17,438 | 70,454 | 34,025 | 40,239 | 44,738 | 53,058 | 51,642 | 17,451 | 23,481 | 61,112 | 69,913 | 82,402 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 157,156 | 122,838 | 159,399 | 146,006 | 225,062 | 194,793 | 160,707 | 98,104 | 117,847 | 123,543 | 145,689 | 183,798 | 190,926 | 115,480 | 109,623 | 111,006 | 128,820 | 152,051 | 128,225 | 112,477 |
| Cash ratio | 0.07 | 0.09 | 0.10 | 0.10 | 0.05 | 0.05 | 0.14 | 0.27 | 0.15 | 0.57 | 0.23 | 0.22 | 0.23 | 0.46 | 0.47 | 0.16 | 0.18 | 0.40 | 0.55 | 0.73 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($11,140K
+ $—K)
÷ $157,156K
= 0.07
The cash ratio of MGE Energy Inc has varied over the past five years, ranging from a low of 0.05 to a high of 0.73. The cash ratio measures the company's ability to cover its short-term liabilities with its readily available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of funding.
The cash ratio for MGE Energy Inc has generally been above 0.1 in recent years, suggesting that the company has a sufficient level of cash on hand to cover its short-term liabilities. However, there are instances where the cash ratio dropped below 0.1, which could be a signal of potential liquidity challenges.
It is important for investors and stakeholders to monitor the trend of the cash ratio over time to assess the company's liquidity position and financial health. Overall, MGE Energy Inc's cash ratio indicates a mixed performance in managing its short-term liquidity needs.