National Fuel Gas Company (NFG)

The liquidity ratios of National Fuel Gas Co. reflect the company's ability to meet its short-term obligations with its current assets. The current ratio, which measures the company's ability to pay its short-term liabilities with its current assets, has declined from 0.86 in 2019 to 0.51 in 2023. This downward trend may indicate potential difficulties in meeting short-term obligations.

Similarly, the quick ratio, which excludes inventory from current assets, has also decreased from 0.66 in 2019 to 0.41 in 2023. This indicates a potential reduction in the company's ability to meet its immediate liabilities without relying on inventory.

Moreover, the cash ratio, which measures the company's ability to cover its current liabilities with only its cash and cash equivalents, has also shown a declining trend from 0.21 in 2019 to 0.17 in 2023. This suggests a potential decrease in the company's ability to cover its short-term obligations with its readily available cash resources.

Overall, the declining trend in these liquidity ratios may indicate a potential liquidity risk for National Fuel Gas Co., highlighting the importance of monitoring the company's ability to meet its short-term obligations.

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Additional liquidity measure

The cash conversion cycle (CCC) of National Fuel Gas Co. has fluctuated over the past five years. In 2023, the CCC is reported at -26.50 days, indicating an efficient management of cash flow, as the company is able to pay off its suppliers while maintaining a negative working capital cycle. this signals a quicker turnover of inventory and accounts payable. In 2022, the CCC improved to -32.23 days, continuing the trend of efficient cash flow management. However, in 2021, the CCC significantly increased to -132.47 days, suggesting a longer time for the company to convert its investments in inventory and other resources into cash. This was a considerable shift from the previous years' performance. In 2020, the CCC was reported at -8.23 days, indicating an improvement from the previous year, potentially due to better management of inventory and payables. Finally, in 2019, the company reported a positive CCC of 5.25 days, signifying a less efficient cash flow management than in subsequent years. Overall, the company's CCC has experienced fluctuations, with an exceptional improvement in 2023 following a considerable dip in 2021.