TXNM Energy, Inc. (TXNM)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 0.28 0.36 0.47 0.37 0.39 0.33 0.37 0.29 0.46 0.61 0.41 0.45 0.49 0.94 0.62 0.22 0.39 0.30 0.26 0.26
Quick ratio 0.00 0.01 0.00 0.00 0.00 0.01 0.01 0.00 0.00 0.38 0.25 0.25 0.28 0.55 0.34 0.10 0.23 0.19 0.14 0.13
Cash ratio 0.00 0.01 0.00 0.00 0.00 0.01 0.01 0.00 0.00 0.01 0.00 0.01 0.00 0.10 0.03 0.00 0.05 0.02 0.00 0.01

TXNM Energy, Inc.'s liquidity ratios have shown varying trends over the past few years. The current ratio, which measures the company's ability to cover its short-term obligations with its short-term assets, fluctuated between 0.22 and 0.94 during the period from March 31, 2021, to December 31, 2024. It reached its peak in September 30, 2021, but generally remained relatively low, indicating potential challenges in meeting short-term obligations.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, showed a similar pattern, ranging from 0.00 to 0.55 over the same period. The ratio was particularly low in the last quarter of 2022 and throughout 2023, suggesting a potential lack of immediate liquidity to cover short-term liabilities without relying on inventory.

Lastly, the cash ratio, which indicates the proportion of current liabilities that could be covered by the company's cash and cash equivalents, also exhibited fluctuations, varying from 0.00 to 0.10. This ratio was generally low, with occasional slight improvements in certain quarters, indicating that TXNM Energy, Inc. may have limited cash reserves in proportion to its current liabilities.

Overall, the liquidity ratios suggest that TXNM Energy, Inc. may have faced challenges in maintaining sufficient short-term liquidity to cover its immediate obligations during the period under review. Management may need to closely monitor and manage the company's working capital and liquidity position to ensure its financial stability and ability to meet short-term financial commitments.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 89.86 63.29 54.90 48.63 40.03 26.97 21.77 15.75 16.07 26.33 25.57 15.14 -6.57 22.29 -1.38 1.54 -32.29 36.57 37.78 17.34

TXNM Energy, Inc.'s cash conversion cycle fluctuated over the periods under review. The trend indicates that the company's ability to convert its resources and investments into cash varied significantly. The cycle ranged from negative days to almost 90 days, suggesting changes in operating efficiency and liquidity management.

In the initial period, the cash conversion cycle was positive and relatively short, indicating a quicker conversion of inventory to cash. However, this trend reversed in subsequent periods as the cycle turned negative, suggesting a faster collection of receivables and payment of payables. This could potentially signal improved working capital management.

As the cycle increased in the later periods, reaching almost 90 days by the end of December 2024, it indicated a longer period for the company to convert its investments in inventory and receivables back into cash. This could be a cause for concern as it may signify inefficiencies in operations or potential cash flow challenges.

Overall, analyzing the cash conversion cycle provides insights into TXNM Energy, Inc.'s efficiency in managing working capital and converting resources into cash. Monitoring this metric over time can help identify trends and areas for improvement in the company's cash flow management.