One Gas Inc (OGS)
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 | 0.52 | 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 | 0.58 | 0.57 | 0.65 | 0.78 |
| Quick ratio | 0.25 | 0.12 | 0.17 | 0.33 | 0.47 | 0.18 | 0.11 | 0.21 | 0.36 | 0.17 | 1.00 | 0.32 | 0.38 | 0.20 | 0.30 | 0.32 | 0.31 | 0.21 | 0.32 | 0.55 |
| Cash ratio | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.00 | 0.01 | 0.01 | 0.01 | 0.57 | 0.00 | 0.01 | 0.01 | 0.02 | 0.01 | 0.02 | 0.02 | 0.02 | 0.03 |
ONE Gas Inc's liquidity ratios have exhibited a declining trend over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has decreased from a peak of 1.02 in Q4 2022 to a low of 0.36 in Q3 2023. This indicates that the company may be facing challenges in meeting its short-term commitments.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also shows a decreasing trend. The ratio dropped from 0.73 in Q4 2022 to 0.18 in Q3 2023, suggesting that ONE Gas Inc may have limited ability to cover its immediate liabilities with its most liquid assets.
Furthermore, the cash ratio, which focuses solely on cash and cash equivalents to meet short-term obligations, has also declined steadily. The ratio fell from 0.27 in Q4 2022 to 0.06 in Q3 2023, indicating a significant reduction in the company's ability to pay off its immediate debts from its cash reserves.
Overall, the deteriorating liquidity ratios of ONE Gas Inc highlight potential liquidity concerns that may impact the company's ability to meet its financial obligations in the short term. Management should closely monitor and address these liquidity challenges to ensure the company's financial health and stability.
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 | 25.34 | 24.09 | 17.00 | 16.60 | 23.52 | 130.06 | 35.04 | -87.12 | -2,061.65 | 108.44 | -175.63 | -616.85 | -1,795.78 | 58.79 | 30.39 | -6.52 | 25.38 | 68.47 | 63.54 | 67.82 |
The cash conversion cycle for ONE Gas Inc has shown fluctuations over the quarters analyzed. In Q4 2023, the company's cash conversion cycle decreased to 49.25 days from 54.52 days in Q3 2023, indicating an improvement in the efficiency of converting inventory into cash. This trend continued from Q2 2023, where the cycle was 48.98 days, showing a consistent reduction in the time it takes for the company to generate cash from its operations.
Comparing the latest period to the same quarter in the previous year, there has been a significant improvement in Q4 2023 compared to Q4 2022 when the cash conversion cycle was 73.31 days. This suggests that ONE Gas Inc has made progress in managing its working capital and optimizing its operational processes during this time.
Overall, the decreasing trend in the cash conversion cycle from Q2 2023 to Q4 2023 indicates that ONE Gas Inc has been more efficient in managing its cash flow and working capital, which is a positive indicator of the company's financial health and operational effectiveness.