MGE Energy Inc (MGEE)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 97,177 | 85,295 | 87,115 | 87,804 | 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 |
| 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 |
| Quick ratio | 0.94 | 0.67 | 0.62 | 0.75 | 0.68 | -0.11 | -0.06 | 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 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($21,302K
+ $—K
+ $97,177K)
÷ $125,563K
= 0.94
The quick ratio of MGE Energy Inc, which measures the company's ability to meet its short-term liabilities with its most liquid assets, has fluctuated over the past few years. The quick ratio was below 1 at several points, indicating potential liquidity challenges. For example, the ratio was 0.79 as of March 31, 2020, and 0.63 as of December 31, 2020, suggesting a possible difficulty in meeting short-term obligations with readily available assets alone during those periods.
However, the company improved its quick ratio in subsequent quarters, reaching a high of 1.25 as of March 31, 2022, indicating a stronger ability to cover short-term liabilities with liquid assets. The ratio remained above 1 in some periods thereafter, which is generally considered favorable.
It's worth noting that the quick ratio dipped below 0 in some quarters, like -0.06 as of June 30, 2023, and -0.11 as of September 30, 2023. A quick ratio less than 0 suggests that current liabilities exceed current assets excluding inventory, which could raise concerns about the company's liquidity position.
Overall, the trend in MGE Energy Inc's quick ratio shows variability in its ability to meet short-term obligations with liquid assets over the analyzed period. Investors and analysts may want to further investigate the factors influencing these fluctuations to assess the company's liquidity risk.