PNM Resources Inc (PNM)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	2,215	4,078	1,104	47,928	3,833
Short-term investments	US$ in thousands	—	26,841	—	440,115	—
Total current liabilities	US$ in thousands	1,230,760	890,370	664,213	977,662	967,481
Cash ratio		0.00	0.03	0.00	0.50	0.00

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,215K + $—K) ÷ $1,230,760K
= 0.00

The cash ratio of PNM Resources Inc has been relatively stable over the past five years, ranging from 0.06 to 0.12. The cash ratio measures the company's ability to cover its short-term liabilities with its readily available cash and cash equivalents. A cash ratio of 0.08 means that for every dollar of current liabilities, PNM Resources Inc has $0.08 in cash and cash equivalents, indicating that the company may have limited liquidity to meet its short-term obligations solely from cash on hand. It is worth noting that the cash ratio of 0.08 in 2023 is consistent with the ratios reported in the previous years, suggesting a consistent management of liquidity by the company. However, a cash ratio below 1 may indicate a potential need for PNM Resources Inc to improve its liquidity position or explore other sources of funding to meet its short-term commitments effectively.