OGE Energy Corporation (OGE)

Oge Energy Corp.'s liquidity ratios have displayed fluctuations over the past five years. The current ratio has been on a declining trend, indicating a decreasing ability to meet short-term obligations with current assets. In 2023, the current ratio reached a low of 0.65, suggesting a potential strain on liquidity compared to the previous year.

Similarly, the quick ratio has shown volatility, with a significant drop from 0.58 in 2022 to 0.30 in 2023. This decline may raise concerns about the company's immediate liquidity position, as the quick ratio measures the ability to cover short-term liabilities with more easily convertible assets.

The cash ratio, which represents the most stringent measure of liquidity, also experienced fluctuations. Oge Energy Corp.'s cash ratio decreased substantially from 0.39 in 2022 to 0.05 in 2023, indicating a notable reduction in the ability to cover short-term obligations solely with cash on hand.

Overall, the liquidity ratios of Oge Energy Corp. suggest a potential liquidity challenge in 2023 compared to the prior years. Investors and stakeholders may want to closely monitor the company's ability to generate sufficient cash flows and manage its short-term obligations to ensure financial stability.

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Additional liquidity measure

The cash conversion cycle of Oge Energy Corp. has fluctuated significantly over the past five years. In 2023, the company's cash conversion cycle increased to 95.51 days, indicating that it took on average 95.51 days to convert its investments in inventory and other resources into cash flows from sales. This increase may suggest challenges in managing working capital efficiently.

In contrast, the company's cash conversion cycle was remarkably low in 2022 and 2021 at 2.26 days and 3.15 days, respectively. This indicates that Oge Energy Corp. was able to quickly convert its resources into cash during these years, reflecting strong working capital management.

In 2020, the company's cash conversion cycle was negative at -15.79 days, implying that Oge Energy Corp. was able to generate cash from its operational activities before paying its suppliers. This efficient management of working capital may have contributed positively to the company's liquidity position.

However, in 2019, the cash conversion cycle increased to 10.62 days, indicating a slightly longer period to convert investments into cash compared to the more efficient years that followed.

Overall, Oge Energy Corp.'s cash conversion cycle has exhibited variability over the years, suggesting fluctuations in the company's working capital management efficiency and cash flow generation capabilities. Monitoring and managing this metric effectively will be crucial for the company in maintaining healthy liquidity levels and operational sustainability.