NorthWestern Corporation (NWE)
Current ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | ||
|---|---|---|---|---|
| Total current assets | US$ in thousands | 418,186 | 368,420 | 364,045 |
| Total current liabilities | US$ in thousands | 802,200 | 813,266 | 699,810 |
| Current ratio | 0.52 | 0.45 | 0.52 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $418,186K ÷ $802,200K
= 0.52
The current ratio of NorthWestern Corporation has shown a declining trend over the past three quarters, starting at 0.52 in June 30, 2024, decreasing to 0.45 in September 30, 2024, and then returning to 0.52 by December 31, 2024.
A current ratio below 1 indicates that the company may have difficulties meeting its short-term obligations with its current assets alone. NorthWestern Corporation's current ratio hovering around 0.5 suggests that the company may have more liabilities in the short term relative to its current assets, which could potentially pose liquidity challenges.
It would be important for NorthWestern Corporation to closely monitor its current assets and liabilities management to ensure they can meet their short-term financial obligations effectively and maintain a healthy liquidity position in the future. Further analysis of the components contributing to the current ratio would provide more insights into the company's liquidity position and financial health.
Peer comparison
Dec 31, 2024