OGE Energy Corporation (OGE)
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 | 0.73 | 0.86 | 0.71 | 0.51 | 0.65 | 0.82 | 0.84 | 0.84 | 0.74 | 0.91 | 0.80 | 0.49 | 0.56 | 0.63 | 0.53 | 0.27 | 0.61 | 0.94 | 0.84 | 0.61 |
| Quick ratio | 0.26 | 0.41 | 0.30 | 0.19 | 0.25 | 0.40 | 0.32 | 0.36 | 0.24 | 0.46 | 0.17 | 0.17 | 0.93 | 0.33 | 0.30 | 0.11 | 0.34 | 0.61 | 0.54 | 0.41 |
| Cash ratio | 0.00 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.18 | 0.05 | 0.24 | 0.00 | 0.00 | 0.72 | 0.00 | 0.00 | 0.00 | 0.00 | 0.06 | 0.11 | 0.17 |
OGE Energy Corporation's liquidity ratios, specifically the current ratio, quick ratio, and cash ratio, provide insight into the company's ability to meet its short-term financial obligations.
The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, shows a fluctuating trend over the years. While the ratio was below 1 in some periods, indicating potential liquidity issues, it improved gradually towards the end of the reporting period. This suggests that OGE Energy Corporation may have struggled with short-term liquidity at times but managed to strengthen its position over time.
The quick ratio, a more stringent liquidity measure that excludes inventory from current assets, follows a similar fluctuating pattern. The ratio was below 1 for some periods, reflecting a limited ability to cover immediate liabilities with highly liquid assets. However, there were improvements in the ratio over time, indicating a more conservative approach to liquidity management.
The cash ratio, which focuses solely on the company's ability to cover its current liabilities with cash and cash equivalents, also shows variability. In the beginning, the company had minimal cash reserves relative to its short-term obligations, but there was a significant improvement in later periods. This suggests that OGE Energy Corporation increased its cash holdings to better handle short-term financial demands.
In conclusion, OGE Energy Corporation's liquidity ratios exhibit fluctuations but display an overall trend of improving liquidity management over the years. The company appears to have addressed potential liquidity challenges and strengthened its ability to meet short-term obligations, particularly by increasing cash reserves and improving the current and quick ratios.
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 | 5.49 | 22.59 | 19.33 | 23.22 | 13.45 | 23.02 | 2.03 | -0.78 | -18.24 | 8.39 | 0.20 | -23.32 | -9.22 | 19.42 | 25.50 | -9.39 | -187.31 | -48.16 | -64.98 | -77.16 |
The cash conversion cycle of OGE Energy Corporation has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The company's cash conversion cycle represents the time it takes to convert its investments in inventory and other resources into cash flows from sales.
During this period, the company experienced both positive and negative cash conversion cycles. A negative cash conversion cycle indicates that OGE Energy Corporation is efficiently managing its working capital, as it is able to collect cash from customers before paying its suppliers.
The cycle hit its lowest point in December 31, 2020, with a figure of -187.31 days. This extreme negative figure suggests that the company was working very efficiently in converting its investments into cash at that time. However, the cycle fluctuated over the years, reaching positive figures in June 30, 2021, and December 31, 2023, indicating potential challenges in managing working capital during those periods.
Overall, the trend in the cash conversion cycle of OGE Energy Corporation is somewhat volatile, with the company experiencing periods of efficient working capital management and others of potentially facing challenges in converting investments into cash. Monitoring and managing this cycle effectively is essential for the company to maintain a healthy cash flow and financial stability.