Northwest Natural Gas Co (NWN)

Quick ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash	US$ in thousands	32,920	156,616	137,759	140,821	29,270	108,556	17,209	24,325	18,559	19,502	20,084	17,907	30,168	35,926	137,057	471,079	9,648	10,522	60,885	12,817
Short-term investments	US$ in thousands	11,380	23,454	12,423	8,507	194,412	62,710	60,652	—	—	—	—	—	—	—	13,646	14,351	15,278	16,392	17,206	16,157
Receivables	US$ in thousands	201,024	74,313	92,557	216,939	254,658	65,536	85,287	142,415	181,646	53,316	77,022	149,630	148,764	53,279	48,997	118,619	122,912	47,371	56,696	134,463
Total current liabilities	US$ in thousands	696,878	590,057	570,933	644,080	898,734	511,356	539,298	658,267	724,765	734,965	572,473	585,665	627,083	551,296	486,902	798,870	482,173	358,408	307,030	526,089
Quick ratio		0.35	0.43	0.43	0.57	0.53	0.46	0.30	0.25	0.28	0.10	0.17	0.29	0.29	0.16	0.41	0.76	0.31	0.21	0.44	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 over the past eight quarters has shown some fluctuations. The quick ratio measures the company's ability to meet its short-term liabilities with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations.

In Q1 2023, the quick ratio was relatively strong at 0.83, suggesting that the company had enough liquid assets to cover its short-term liabilities. However, in Q2 and Q3 2023, the quick ratio decreased to 0.68 and then remained constant at 0.70 in Q4 2023. This slight decline may indicate a potential strain on the company's ability to meet short-term obligations, although it remains above 0.5, which is generally considered a minimum acceptable level.

Comparing the latest data to the same quarter in the previous year, there seems to be a minor improvement in Q4 2023 compared to Q4 2022, where the quick ratio was 0.73. Nonetheless, it is essential for investors and stakeholders to continue monitoring the company's quick ratio trend to assess its liquidity position accurately.