National Fuel Gas Company (NFG)
Liquidity ratios
| 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.32 | 0.77 | 0.58 | 0.56 | 0.51 | 0.61 | 0.59 | 0.57 | 0.39 | 0.53 | 0.33 | 0.63 | 0.42 | 0.73 | 1.13 | 0.50 | 0.68 | 2.43 | 0.85 | 0.79 |
| Quick ratio | 0.03 | 0.12 | 0.08 | 0.07 | 0.04 | 0.04 | 0.09 | 0.35 | 0.04 | 0.39 | 0.06 | 0.20 | 0.04 | 0.36 | 0.41 | 0.26 | 0.03 | 1.60 | 0.22 | 0.35 |
| Cash ratio | 0.03 | 0.16 | 0.07 | 0.05 | 0.07 | 0.08 | 0.08 | 0.32 | 0.05 | 0.40 | 0.05 | 0.18 | 0.05 | 0.39 | 0.40 | 0.24 | 0.04 | 1.62 | 0.19 | 0.06 |
The liquidity ratios of National Fuel Gas Company, as reflected in the current ratio, quick ratio, and cash ratio, show fluctuations over the past few quarters.
The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has been volatile, ranging from a low of 0.32 in Sep 2024 to a high of 2.43 in Sep 2022. A current ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also demonstrates variability, ranging from 0.03 in Sep 2020 to 1.60 in Dec 2019. A quick ratio below 1 suggests a potential liquidity issue, as the company may struggle to meet its immediate obligations without relying on inventory.
The cash ratio, the most conservative liquidity metric that considers only cash and cash equivalents, has also shown fluctuations, with values between 0.03 and 1.62 over the same period. A cash ratio below 1 signifies that the company does not have sufficient cash on hand to cover its short-term liabilities.
In summary, the liquidity ratios of National Fuel Gas Company indicate inconsistency in its ability to meet short-term obligations. Investors and analysts should closely monitor these ratios to assess the company's liquidity risk and financial health.
Additional liquidity measure
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -38.21 | -52.51 | -45.38 | -23.63 | -46.31 | -18.66 | -37.12 | -55.41 | -74.24 | -69.41 | -65.34 | -59.35 | -105.58 | -60.71 | -61.20 | -26.27 | -71.23 | -39.39 | -72.65 | -119.58 |
The cash conversion cycle of National Fuel Gas Company has exhibited fluctuating trends over the past several quarters. The company's cash conversion cycle, the time it takes to convert its investment in inventory and accounts receivable into cash, has been negative, indicating that the company has been able to generate cash from its operating cycle efficiently.
Analyzing the data, we observe that the cash conversion cycle reached its lowest point in the most recent quarter at -38.21 days, reflecting an improvement compared to the previous quarters. This suggests that the company has been managing its inventory and collecting receivables more effectively, leading to a faster conversion of operating assets into cash.
Despite the improvements in the latest quarter, the cash conversion cycle has shown variability over the historical periods, with fluctuations ranging from -105.58 days to -18.66 days. These variations may be attributed to changes in the company's operating efficiency, inventory management policies, and accounts receivable collection practices.
It is essential for National Fuel Gas Company to sustain and improve its cash conversion cycle performance in the future to ensure efficient working capital management and cash flow generation. By optimizing inventory levels, streamlining receivables collection, and managing payables effectively, the company can enhance its operational efficiency and financial performance.