OGE Energy Corporation (OGE)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	200	88,100	0	1,100	0
Short-term investments	US$ in thousands	—	0	785,100	0	1,234,200
Receivables	US$ in thousands	299,700	345,000	229,900	233,500	229,400
Total current liabilities	US$ in thousands	1,179,200	1,802,200	1,089,600	697,400	657,900
Quick ratio		0.25	0.24	0.93	0.34	2.22

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($200K + $—K + $299,700K) ÷ $1,179,200K
= 0.25

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that a company may have difficulty covering its current liabilities with its liquid assets.

Oge Energy Corp.'s quick ratio has fluctuated over the past five years, indicating varying levels of liquidity. As of December 31, 2023, the quick ratio was 0.30, which is significantly lower compared to the previous years. This suggests that Oge Energy Corp. may face challenges in meeting its short-term obligations with its available liquid assets.

The steep decline in the quick ratio from 2022 to 2023 raises concerns about the company's current liquidity position. Investors and analysts may scrutinize the company's cash management practices and explore potential reasons for the decline in liquidity.

Further investigation into Oge Energy Corp.'s working capital management, cash flow generation, and overall financial health may be warranted to assess the company's ability to navigate short-term financial challenges and meet its obligations.