National Fuel Gas Company (NFG)

Cash ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Cash and cash equivalents	US$ in thousands	55,447	46,048	31,528	20,541	20,428
Short-term investments	US$ in thousands	—	46,048	31,528	—	—
Total current liabilities	US$ in thousands	806,312	1,942,570	1,236,130	459,573	421,908
Cash ratio		0.07	0.05	0.05	0.04	0.05

September 30, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($55,447K + $—K) ÷ $806,312K
= 0.07

The cash ratio of National Fuel Gas Co. has varied over the past five years. The cash ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, was 0.17 as of September 30, 2023. This represented an improvement from the previous year, when the ratio was 0.10. However, the ratio was also 0.10 in September 2021, indicating that there was no change in this metric from 2021 to 2022.

Comparing the most recent ratio to the data from 2020 and 2019, National Fuel Gas Co. has experienced a decline in its cash ratio, as it was 0.18 and 0.21, respectively. This suggests that the company may have reduced its ability to cover short-term liabilities with cash and cash equivalents over the past three years. It is important to note that a lower cash ratio may indicate a higher reliance on external financing or a lower level of liquidity, which could pose potential risks to the company's financial health.