Spire Inc (SR)

Cash ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cash and cash equivalents	US$ in thousands	4,500	5,600	6,500	4,300	4,100
Short-term investments	US$ in thousands	—	—	87,800	—	—
Total current liabilities	US$ in thousands	1,703,900	1,755,400	2,353,600	1,608,300	1,449,200
Cash ratio		0.00	0.00	0.04	0.00	0.00

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($4,500K + $—K) ÷ $1,703,900K
= 0.00

The cash ratio for Spire Inc fluctuated significantly over the past five years. In 2022, the company had a cash ratio of 0.04, indicating that it had $0.04 in cash and cash equivalents for every $1 of current liabilities. This suggests that the company had an improved ability to cover its short-term liabilities with its available cash in 2022 compared to the other years.

However, in 2020, 2021, 2023, and 2024, the cash ratio was 0.00, indicating that the company did not have enough cash and cash equivalents to cover its current liabilities during those years. This could be a potential red flag as it may indicate liquidity issues or challenges in meeting short-term obligations with available cash on hand.

Overall, the trend in Spire Inc's cash ratio shows inconsistency in its ability to cover short-term obligations with cash reserves. It would be important for the company to focus on strengthening its liquidity position to ensure financial stability and meet its short-term obligations efficiently.