MGE Energy Inc (MGEE)
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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 95,533 | 85,776 | 82,873 | 95,933 | 109,911 | 81,298 | 78,612 | 96,250 | 97,111 | 79,085 | 71,951 | 78,022 | 76,195 | 69,034 | 64,655 | 70,707 | 74,321 | 64,598 | 64,938 | 77,334 |
| 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 |
| Quick ratio | 0.68 | 0.79 | 0.62 | 0.76 | 0.54 | 0.47 | 0.63 | 1.25 | 0.97 | 1.21 | 0.73 | 0.64 | 0.63 | 1.06 | 1.06 | 0.79 | 0.76 | 0.83 | 1.05 | 1.42 |
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 few quarters, ranging from a low of 0.47 to a high of 1.42. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations using its most liquid assets.
The ratio improved significantly in the March 2022 quarter, reaching 1.25, suggesting stronger liquidity and potential ability to cover short-term liabilities. However, this improvement was not sustained, as the ratio decreased in subsequent quarters but remained above 1 until the March 2023 quarter.
The decreasing trend in the quick ratio from March 2023 to December 2023 may raise concerns about the company's ability to cover immediate liabilities with its current liquid assets. Investors and stakeholders may monitor this ratio closely to assess MGE Energy Inc's liquidity position in the near future.