Northwest Natural Gas Co (NWN)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	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
Receivables	US$ in thousands	201,024	254,658	181,646	148,764	122,912
Total current liabilities	US$ in thousands	696,878	898,734	724,765	627,083	482,173
Quick ratio		0.35	0.53	0.34	0.31	0.31

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($32,920K + $11,380K + $201,024K) ÷ $696,878K
= 0.35

The quick ratio of Northwest Natural Holding Co has shown a fluctuating trend over the past five years. The ratio stood at 0.70 as of December 31, 2023, indicating that the company had $0.70 of liquid assets available to cover each dollar of current liabilities. This represents an improvement from the previous year's ratio of 0.73.

Looking back at earlier years, the quick ratio was significantly lower in December 31, 2021, and December 31, 2020, at 0.52 and 0.43, respectively. This depicts a potential liquidity challenge in those years as the company had limited liquid assets to meet its short-term obligations.

However, there was a slight increase in the quick ratio in December 31, 2019, compared to the two preceding years, standing at 0.45. This improvement suggests that Northwest Natural Holding Co enhanced its ability to quickly cover its current liabilities compared to the immediate past.

Overall, while the current quick ratio of 0.70 indicates an improvement in short-term liquidity, it is important for the company to continue monitoring and managing its liquid assets to ensure it can meet its short-term obligations effectively in the future.