PNM Resources Inc (PNM)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	2,215	4,078	1,104	47,928	3,833
Short-term investments	US$ in thousands	—	26,841	—	440,115	—
Receivables	US$ in thousands	197,060	249,493	185,906	174,586	148,238
Total current liabilities	US$ in thousands	1,230,760	890,370	664,213	977,662	967,481
Quick ratio		0.16	0.31	0.28	0.68	0.16

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,215K + $—K + $197,060K) ÷ $1,230,760K
= 0.16

The quick ratio of PNM Resources Inc has fluctuated over the past five years. In 2023, the quick ratio decreased to 0.31 from 0.39 in 2022, indicating a decline in the company's ability to quickly cover its current liabilities with its most liquid assets. While the ratio improved in 2022 compared to 2021 and remained consistent at 0.39, it decreased from 0.32 in 2020 and significantly rose from 0.22 in 2019. This fluctuation suggests variability in the company's short-term liquidity position over the years. A quick ratio below 1 may raise concerns about the company's ability to meet its short-term obligations promptly. Further analysis of the company's liquidity management practices and potential risk factors affecting its liquidity position may provide additional insights.