MGE Energy Inc (MGEE)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 238,197 | 216,411 | 222,531 | 223,249 | 243,480 | 199,847 | 194,640 | 194,433 | 199,371 | 234,085 | 191,393 | 201,511 | 209,519 | 199,933 | 217,750 | 162,193 | 181,641 | 204,396 | 211,600 | 221,278 |
| 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 |
| Current ratio | 1.52 | 1.76 | 1.40 | 1.53 | 1.08 | 1.03 | 1.21 | 1.98 | 1.69 | 1.89 | 1.31 | 1.10 | 1.10 | 1.73 | 1.99 | 1.46 | 1.41 | 1.34 | 1.65 | 1.97 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $238,197K ÷ $157,156K
= 1.52
The current ratio of MGE Energy Inc has shown some fluctuation over the past few quarters. As of December 31, 2023, the current ratio stands at 1.52, indicating that the company's current assets are 1.52 times its current liabilities. This suggests that MGE Energy Inc has a reasonable level of liquidity to cover its short-term obligations.
Looking at the trend over the past several quarters, we observe a general improvement in the current ratio starting from the third quarter of 2022 through the second quarter of 2023. However, there was a dip in the ratio in the third quarter of 2023, followed by a slight increase in the fourth quarter of 2023.
It is important to note that a current ratio above 1.0 is typically considered healthy, as it indicates that a company has more current assets than current liabilities. A higher current ratio implies a stronger ability to meet short-term obligations. MGE Energy Inc's current ratio has generally remained above 1.0, reflecting a positive liquidity position.
Overall, while there have been fluctuations in the current ratio of MGE Energy Inc, the company has maintained a satisfactory level of liquidity and the ability to meet its short-term financial obligations.