One Gas Inc (OGS)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	765,204	1,217,610	2,224,560	539,869	506,202
Total current liabilities	US$ in thousands	1,477,220	1,189,420	980,493	797,079	872,737
Current ratio		0.52	1.02	2.27	0.68	0.58

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $765,204K ÷ $1,477,220K
= 0.52

Based on the data provided, the current ratio of ONE Gas Inc has exhibited significant fluctuation over the past five years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, stood at 0.52 as of December 31, 2023. This indicates that the company's current assets only cover approximately half of its current liabilities.

Comparing this to previous years, we observe a decline in the current ratio from 2.27 in 2021 and 1.02 in 2022. The significant drop in the current ratio from 2022 to 2023 suggests a weakening liquidity position for ONE Gas Inc. Additionally, the ratios from 2020 (0.68) and 2019 (0.58) also indicate a historically lower coverage of current liabilities by current assets.

A current ratio below 1.0 typically raises concerns about a company's short-term liquidity and ability to meet its obligations. Investors and creditors may view a low current ratio as a sign of potential financial distress or inefficiency in managing working capital.

In conclusion, ONE Gas Inc's current ratio has shown volatility over the years, with the latest data as of December 31, 2023, indicating a relatively weak liquidity position. This underscores the importance of monitoring the company's ability to manage short-term obligations and working capital effectively.