PNM Resources Inc (PNM)

Quick ratio

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 US$ in thousands 2,215 7,768 7,640 4,132 4,078 5,622 3,484 4,389 1,104 49,481 18,457 7,521 47,928 30,893 2,823 16,249 3,833 20,094 4,226 180,088
Short-term investments US$ in thousands 26,841 26,066 455,409 453,007 437,028 440,115 408,551
Receivables US$ in thousands 197,060 245,347 191,492 183,504 249,493 247,328 220,135 162,270 185,906 211,023 198,830 150,968 174,586 204,702 171,183 133,324 148,238 176,831 149,281 141,265
Total current liabilities US$ in thousands 1,230,760 1,478,570 1,108,240 1,195,460 890,370 666,469 894,484 673,043 664,213 475,207 636,467 1,511,120 977,662 1,251,580 1,265,770 1,114,920 967,481 945,729 666,541 664,133
Quick ratio 0.16 0.17 0.18 0.16 0.31 0.38 0.28 0.25 0.28 1.51 1.05 0.39 0.68 0.51 0.14 0.13 0.16 0.21 0.23 0.48

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 been fluctuating over the past eight quarters, ranging from a low of 0.24 to a high of 0.52. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.

A quick ratio below 1 indicates potential liquidity concerns as the company may not have enough liquid assets to cover its current liabilities. In this case, PNM Resources Inc has consistently had quick ratios below 1, with the lowest being 0.24 in Q1 2023 and the highest at 0.52 in Q4 2022.

The downward trend in the quick ratio from Q4 2022 to Q1 2023 suggests a potential deterioration in the company's ability to meet short-term obligations. However, the quick ratio improved slightly in Q2 and Q3 2023 before decreasing again in Q4 2023.

Overall, PNM Resources Inc's quick ratio indicates a relatively low level of liquidity compared to its current liabilities. Investors and stakeholders should monitor this ratio closely to assess the company's short-term financial health and ability to meet its obligations.


Peer comparison

Dec 31, 2023