Northwest Natural Gas Co (NWN)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 38,490 32,920 29,270 18,559 30,168
Short-term investments US$ in thousands 1,636,610 -130,313 194,412 48,130 13,678
Receivables US$ in thousands
Total current liabilities US$ in thousands 60,575 696,878 898,734 724,765 627,083
Quick ratio 27.65 -0.14 0.25 0.09 0.07

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($38,490K + $1,636,610K + $—K) ÷ $60,575K
= 27.65

The quick ratio of Northwest Natural Gas Co has shown significant fluctuations over the years based on the provided data.

In December 31, 2020, the quick ratio was extremely low at 0.07, indicating that the company had limited liquid assets to cover its current liabilities.

By December 31, 2021, the quick ratio improved slightly to 0.09, although it still remained relatively low, suggesting that the company's ability to meet short-term obligations with liquid assets was still a concern.

In December 31, 2022, there was a substantial improvement in the quick ratio to 0.25, indicating a better ability to cover its current liabilities with liquid assets.

However, by December 31, 2023, the quick ratio turned negative at -0.14, which could be a cause for concern as it suggests that the company's current liabilities exceeded its quick assets, potentially indicating liquidity issues.

Surprisingly, by December 31, 2024, the quick ratio skyrocketed to 27.65, which appears highly unusual and may possibly be due to a significant one-time event or anomalous data.

Overall, the fluctuations in the quick ratio of Northwest Natural Gas Co highlight the importance of monitoring liquidity levels and the need for further investigation into the drivers behind such drastic changes in the company's ability to meet its short-term obligations.