MGE Energy Inc (MGEE)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 11,140 | 11,604 | 17,438 | 44,738 | 23,481 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 95,533 | 109,911 | 97,111 | 76,195 | 74,321 |
| Total current liabilities | US$ in thousands | 157,156 | 225,062 | 117,847 | 190,926 | 128,820 |
| Quick ratio | 0.68 | 0.54 | 0.97 | 0.63 | 0.76 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($11,140K
+ $—K
+ $95,533K)
÷ $157,156K
= 0.68
The quick ratio of MGE Energy Inc has fluctuated over the past five years, ranging from 0.54 to 0.97. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities with its current liquid assets alone.
In the most recent year, as of December 31, 2023, the quick ratio was 0.68, showing a moderate improvement from the previous year. This suggests that MGE Energy Inc may have strengthened its liquidity position compared to the prior year. However, the quick ratio is still below 1, indicating that the company may need to rely on other sources of liquidity to meet its short-term obligations.
It's worth noting that the quick ratio can vary across industries, so it's essential to compare MGE Energy Inc's quick ratio to industry benchmarks for a more accurate assessment of its liquidity position. Overall, monitoring the trend of the quick ratio over time can provide insights into the company's financial health and its ability to manage short-term liquidity challenges.