American Water Works (AWK)
Cash ratio
| 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 and cash equivalents | US$ in thousands | 96,000 | 127,000 | 48,000 | 584,000 | 330,000 | 628,000 | 794,000 | 213,000 | 85,000 | 77,000 | 71,000 | 75,000 | 116,000 | 70,000 | 70,000 | 69,000 | 547,000 | 560,000 | 569,000 | 556,000 |
| Short-term investments | US$ in thousands | — | 76,000 | 76,000 | 72,000 | 62,000 | 72,000 | 69,000 | 64,000 | 67,000 | 23,000 | 25,000 | 19,000 | 17,000 | 14,000 | 17,000 | 16,000 | 11,000 | 18,000 | 14,000 | 10,000 |
| Total current liabilities | US$ in thousands | 3,150,000 | 2,132,000 | 1,825,000 | 1,857,000 | 2,151,000 | 1,743,000 | 1,764,000 | 1,892,000 | 2,811,000 | 2,130,000 | 1,728,000 | 1,648,000 | 2,141,000 | 1,844,000 | 1,710,000 | 2,451,000 | 2,881,000 | 2,260,000 | 2,113,000 | 2,767,000 |
| Cash ratio | 0.03 | 0.10 | 0.07 | 0.35 | 0.18 | 0.40 | 0.49 | 0.15 | 0.05 | 0.05 | 0.06 | 0.06 | 0.06 | 0.05 | 0.05 | 0.03 | 0.19 | 0.26 | 0.28 | 0.20 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($96,000K
+ $—K)
÷ $3,150,000K
= 0.03
The cash ratio of American Water Works, a measure of its ability to cover short-term liabilities with its cash and cash equivalents, has exhibited fluctuations over the past few years based on the provided data.
From March 31, 2020, to June 30, 2020, the cash ratio increased from 0.20 to 0.28, indicating an improvement in the company's ability to cover short-term obligations with its cash on hand. Subsequently, the ratio decreased to 0.19 by December 31, 2020.
The trend continued to fluctuate over the following quarters, reaching a low of 0.03 on March 31, 2021, before gradually increasing to 0.49 by June 30, 2023, which was the highest point in the period analyzed. This significant improvement suggests a strengthened liquidity position.
However, the ratio decreased to 0.07 by June 30, 2024, indicating a decrease in the company's cash reserves relative to its short-term liabilities. By the end of the period, on December 31, 2024, the cash ratio stood at 0.03, which signifies a potential liquidity concern as it indicates the company may have difficulty covering short-term obligations solely with its cash holdings.
Overall, the cash ratio of American Water Works has experienced fluctuations, pointing towards varying levels of liquidity over the period analyzed. It is essential for investors and stakeholders to carefully monitor these trends to assess the company's ability to meet its short-term obligations efficiently.
Peer comparison
Dec 31, 2024