TXNM Energy, Inc. (TXNM)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	4,498	2,215	4,078	1,104	47,928
Short-term investments	US$ in thousands	—	-1,728	—	—	—
Total current liabilities	US$ in thousands	1,775,100	1,230,760	890,370	664,213	977,662
Cash ratio		0.00	0.00	0.00	0.00	0.05

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($4,498K + $—K) ÷ $1,775,100K
= 0.00

Based on the data provided, TXNM Energy, Inc.'s cash ratio has exhibited a declining trend over the past few years. The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A cash ratio of 0.05 as of December 31, 2020 indicates that for every dollar of current liabilities, the company had $0.05 in cash on hand, suggesting a relatively weak liquidity position.

However, the subsequent years show a concerning development, with the cash ratio dropping to 0.00 as of December 31, 2021, and remaining at 0.00 for the following years through December 31, 2024. A cash ratio of 0.00 implies that the company had no cash reserves to cover its short-term obligations, raising red flags about its ability to meet its immediate financial commitments solely from its cash holdings.

This downward trend in the cash ratio signals potential liquidity challenges for TXNM Energy, Inc., which could impact its operational flexibility and ability to weather unexpected financial setbacks. Investors and stakeholders may view a declining cash ratio as a cause for concern, highlighting the importance of closely monitoring the company's liquidity position and cash management strategies in the future.