Northwest Natural Gas Co (NWN)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	32,920	29,270	18,559	30,168	9,648
Short-term investments	US$ in thousands	11,380	194,412	48,130	13,678	15,278
Total current liabilities	US$ in thousands	696,878	898,734	724,765	627,083	482,173
Cash ratio		0.06	0.25	0.09	0.07	0.05

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($32,920K + $11,380K) ÷ $696,878K
= 0.06

The cash ratio of Northwest Natural Holding Co has shown fluctuations over the past five years. The ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents.

In 2023, the cash ratio was 0.41, slightly lower than the previous year's ratio of 0.45. This suggests that the company may have slightly reduced its ability to cover its short-term liabilities solely with cash and cash equivalents. However, a ratio above 0.20 generally indicates that the company has a strong liquidity position.

Comparing to 2021 and 2020, the company has made significant improvements in its cash ratio. In 2021, the ratio was 0.27, and in 2020, it was 0.19. This indicates that the company has improved its ability to cover short-term liabilities with cash over the past two years.

Overall, the trend in Northwest Natural Holding Co's cash ratio shows a generally positive liquidity position, although there was a slight decrease in 2023 compared to the previous year. It is essential for investors and stakeholders to monitor the company's cash position and liquidity management to ensure its ongoing financial stability.