OGE Energy Corporation (OGE)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 0.65 | 0.79 | 0.65 | 0.51 |
| Quick ratio | 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 | 2.22 | 0.49 | 0.36 | 0.26 |
| Cash ratio | 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 | 1.88 | 0.02 | 0.00 | 0.00 |
The liquidity ratios of Oge Energy Corp. indicate its ability to meet its short-term obligations and manage its current financial position. The current ratio has shown some fluctuations over the quarters, ranging from a low of 0.65 to a high of 0.91. While the current ratio has been below 1 in most quarters, indicating potential liquidity concerns, it did show some improvement in the last few quarters.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also exhibits variability over the quarters, ranging from 0.30 to 0.78. The company's ability to cover its short-term obligations with its most liquid assets seems to have improved in the recent quarters compared to earlier periods.
Furthermore, the cash ratio, which focuses solely on the ability to cover current liabilities with cash and cash equivalents, has shown a wider range from 0.05 to 0.57. This suggests that Oge Energy Corp. may have limited cash reserves relative to its current liabilities, especially in earlier quarters.
Overall, the liquidity ratios of Oge Energy Corp. reflect a mixed performance with some improvement in recent quarters. The company may need to focus on managing its short-term liquidity more effectively to ensure financial stability and meet its obligations in a timely manner.
Additional liquidity measure
| 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 conversion cycle | days | 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 | -6.49 | 21.46 | 13.97 | -1.35 |
The cash conversion cycle of Oge Energy Corp. has exhibited fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 95.51 days, indicating that it takes approximately 95.51 days for the company to turn its investments in inventory into cash from sales. This represents an increase from the previous quarter, Q3 2023, where the cash conversion cycle was 82.52 days.
The highest cash conversion cycle observed in the data provided was in Q4 2022, at 32.10 days, demonstrating a significant increase from the negative cash conversion cycle recorded in Q1 2022. A negative cash conversion cycle, such as in Q1 2022 and Q1 2022, suggests that the company is able to collect cash from customers before paying its suppliers, which can be a favorable position for working capital management.
Looking at the trend, there has been a general pattern of fluctuation in the cash conversion cycle, with some quarters showing longer cycles (Q4 2023, Q3 2023), reflecting potential inefficiencies in managing inventory, receivables, and payables. On the other hand, quarters with shorter cycles (Q1 2023, Q4 2022, Q2 2022) indicate more efficient management of working capital.
Overall, close monitoring and management of the cash conversion cycle are crucial for Oge Energy Corp. to ensure effective liquidity management and optimal utilization of its resources.