MGE Energy Inc (MGEE)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 21,302 | 14,875 | 16,270 | 16,687 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | -111,166 | -108,830 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 125,563 | 149,605 | 168,077 | 139,655 | 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 |
| Cash ratio | 0.17 | 0.10 | 0.10 | 0.12 | 0.07 | -0.81 | -0.58 | 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 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($21,302K
+ $—K)
÷ $125,563K
= 0.17
The cash ratio of MGE Energy Inc has fluctuated over the historical period. The cash ratio stood at 0.16 as of March 31, 2020, indicating that the company had $0.16 in cash and cash equivalents for every $1 of current liabilities. This ratio improved to 0.47 by June 30, 2020, suggesting a stronger liquidity position.
Although there was a slight decline in the cash ratio by the end of 2020 to 0.23, it remained at a reasonable level. The ratio decreased further to 0.22 by March 31, 2021, before recovering slightly to 0.23 by June 30, 2021.
The company's liquidity position strengthened significantly by September 30, 2021, with a cash ratio of 0.57, indicating ample cash reserves to cover short-term obligations. However, this ratio declined sharply by the end of 2021 to 0.15, suggesting a potential strain on liquidity.
The cash ratio saw some improvement by March 31, 2022, at 0.27, indicating a better liquidity position. However, by June 30, 2022, the ratio dropped to 0.14, signaling a decrease in cash available relative to current liabilities.
The cash ratio took a significant downturn by September 30, 2022, and December 31, 2022, both recording a ratio of 0.05, potentially indicating challenges in meeting short-term obligations.
There was a slight rebound in the cash ratio by March 31, 2023, at 0.10, and a further recovery to 0.12 by June 30, 2023. However, there was a notable decline by September 30, 2023, and December 31, 2023, with negative ratios of -0.81 and -0.58, respectively, which may raise concerns regarding the company's liquidity.
The cash ratio improved again by March 31, 2024, to 0.10, before reaching 0.17 by the end of December 31, 2024. Overall, the trend in MGE Energy Inc's cash ratio suggests fluctuations in its liquidity position over the analyzed period, warranting ongoing monitoring to ensure adequate cash reserves to meet short-term obligations.