One Gas Inc (OGS)
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 | 0.64 | 0.50 | 0.41 | 0.47 | 0.52 | 0.36 | 0.40 | 0.51 | 1.02 | 0.87 | 0.92 | 0.96 | 2.27 | 1.05 | 1.63 | 1.32 | 0.68 | 0.64 | 0.71 | 0.53 |
| Quick ratio | 0.04 | 0.01 | 0.02 | 0.02 | 0.03 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.00 | 0.01 | 0.01 | 0.01 | 0.57 | 0.80 | 0.01 | 0.01 | 0.02 | 0.01 |
| Cash ratio | 0.04 | 0.01 | 0.02 | 0.02 | 0.03 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.00 | 0.01 | 0.01 | 0.01 | 0.57 | 0.80 | 0.01 | 0.01 | 0.02 | 0.01 |
One Gas Inc's liquidity ratios indicate the company's ability to meet its short-term obligations.
- The current ratio has fluctuated over the years, ranging from a low of 0.36 to a high of 2.27. It was below 1 in some periods, signifying potential difficulty in meeting short-term liabilities with current assets alone. However, the ratio improved significantly in later periods, exceeding 1, indicating a healthier liquidity position.
- The quick ratio reflects a more conservative measure of liquidity as it excludes inventory from current assets. The quick ratio for One Gas Inc has also varied, with values as low as 0 and as high as 0.8. An increase in the quick ratio over time suggests an improvement in the company's ability to meet short-term obligations without relying on inventory.
- The cash ratio, which is the most stringent liquidity measure, considers only cash and cash equivalents. One Gas Inc's cash ratio has shown a similar pattern to the quick ratio, with values ranging from 0 to 0.8. An increasing trend in the cash ratio indicates a higher ability to cover short-term liabilities with readily available cash resources.
Overall, One Gas Inc has shown improvements in its liquidity position over the periods, especially in recent years, as indicated by increasing current, quick, and cash ratios. Maintaining a strong liquidity position is essential for the company to meet its financial obligations and fund its operations efficiently.
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 | 70.30 | 76.29 | 68.54 | 59.03 | 70.03 | 58.27 | 41.34 | 31.89 | 64.27 | 86.51 | 57.54 | 31.25 | 69.90 | 71.63 | 45.99 | 32.79 | 55.29 | 61.98 | 48.37 | 37.98 |
The cash conversion cycle of One Gas Inc has shown fluctuations over the years. The cycle represents the time it takes for the company to convert its investments in inventory into cash flows from sales.
From March 31, 2020, to June 30, 2020, there was an increase in the cycle duration from 37.98 days to 48.37 days. This indicates a slower conversion of inventory into cash during that period.
The cycle increased further to 71.63 days by September 30, 2021, signaling a significant delay in cash collection from sales. However, it decreased to 31.25 days by March 31, 2022, showing an improvement in cash collection efficiency.
By September 30, 2022, the cycle reached 86.51 days, which was the longest duration observed in this dataset. This prolonged cycle may indicate challenges in managing working capital effectively.
Overall, the fluctuating trend in the cash conversion cycle of One Gas Inc suggests variations in managing inventory, receivables, and payables, impacting the company's liquidity and operational efficiency. Monitoring and optimizing the cash conversion cycle is crucial for a company to ensure sufficient cash flows and sustainable operations.