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.