National Fuel Gas Company (NFG)

Quick ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cash	US$ in thousands	38,222	55,447	46,048	31,528	20,541
Short-term investments	US$ in thousands	-87,905	42,242	46,048	31,528	—
Receivables	US$ in thousands	-10,673	-19,673	-10,153	-14,639	-5,508
Total current liabilities	US$ in thousands	1,095,890	806,312	1,942,570	1,236,130	459,573
Quick ratio		-0.06	0.10	0.04	0.04	0.03

September 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($38,222K + $-87,905K + $-10,673K) ÷ $1,095,890K
= -0.06

Based on the provided data, we observe varying quick ratio values for National Fuel Gas Company over the past five years. The quick ratio is calculated by dividing the sum of cash, cash equivalents, and accounts receivable by current liabilities. A quick ratio below 1 indicates potential liquidity challenges.

In 2024, the quick ratio is -0.06, suggesting that the company's current liquid assets were insufficient to cover its current liabilities, potentially indicating liquidity constraints. This sharp decline may raise concerns about the company's ability to meet its short-term obligations using its most liquid assets.

In 2023, the quick ratio improved to 0.10, indicating a better position compared to 2024. However, the ratio was still below 1, indicating that the company may have faced difficulty in settling its short-term debts using readily available assets.

In 2022 and 2021, the quick ratio remained stable at 0.04, signaling that the company's liquidity position did not experience significant changes during these years. Although the ratio remained consistently below 1, it suggests a persistent challenge in meeting short-term obligations with available liquid assets.

In 2020, the quick ratio was 0.03, slightly lower than in subsequent years. This indicates that the company faced liquidity challenges, which may have impacted its ability to quickly cover its short-term liabilities.

Overall, National Fuel Gas Company's quick ratio trend indicates a consistent struggle to maintain a healthy liquidity position over the past five years, as reflected in the consistently low ratios relative to the ideal threshold of 1. Investors and stakeholders may need to monitor this metric closely to assess the company's ability to manage its short-term financial commitments.