Northwest Natural Gas Co (NWN)

Liquidity ratios

Dec 31, 2024 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
Current ratio 0.86 0.83 0.97 1.15 0.86 0.86 0.80 0.89 0.83 0.94 0.66 0.59 0.60 0.49 0.48 0.52 0.52 0.44 0.65 0.90
Quick ratio 0.06 0.07 0.15 0.20 0.09 0.31 0.26 0.23 0.25 0.33 -0.06 0.17 0.09 0.17 0.12 0.06 0.05 0.07 0.31 0.61
Cash ratio 0.06 0.07 0.15 0.20 0.09 0.31 0.26 0.23 0.25 0.33 -0.06 0.17 0.09 0.17 0.12 0.06 0.05 0.07 0.31 0.61

The Current Ratio of Northwest Natural Gas Co has fluctuated over the years, starting at a low of 0.44 in September 2020, improving to 1.15 by March 2024. This indicates the company's ability to cover its short-term liabilities with its current assets has strengthened over time.

The Quick Ratio, on the other hand, has shown more variability, reaching negative levels at times. Despite this, the Quick Ratio improved to 0.20 by March 2024, reflecting a better capacity to meet short-term obligations without relying on inventory.

The Cash Ratio mirrors the Quick Ratio trends, showing an improvement to 0.20 by March 2024. This suggests that the company has enhanced its ability to meet immediate payment obligations with its cash and cash equivalents.

Overall, the liquidity ratios demonstrate a positive trend in Northwest Natural Gas Co's ability to meet its short-term obligations, with improvements in both the Current and Quick Ratios over the years.

Additional liquidity measure

Dec 31, 2024 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
Cash conversion cycle days 84.24 54.20 46.29 41.95 46.16 41.17 30.28 19.46 45.67 57.23 39.17 21.35 39.34 44.14 29.17 19.91 32.93 34.57 33.87 27.07

The cash conversion cycle of Northwest Natural Gas Co has shown fluctuations over the period under review. The cycle is a measure of the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales, and then back into cash through the collection of accounts receivable.

Analyzing the data provided, we observe that the company's cash conversion cycle ranged from a low of 19.46 days on March 31, 2023, to a high of 84.24 days on December 31, 2024. This indicates potential variability in the efficiency of the company's working capital management.

The trend in the cash conversion cycle shows some inconsistency, with periods of improvement followed by periods of deterioration. Notably, there was a significant increase in the cycle from 21.35 days on March 31, 2022, to 57.23 days on September 30, 2022, suggesting a prolonged cycle in converting resources into cash during that period.

It is essential for Northwest Natural Gas Co to closely monitor and manage its cash conversion cycle to ensure efficient utilization of its resources and timely cash inflows. Timely collection of receivables and efficient inventory management are crucial factors that can influence the company's overall liquidity and working capital position. Further analysis and comparison with industry benchmarks would provide more insights into the company's working capital efficiency.