American Water Works (AWK)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,215,000 | 1,389,000 | 1,250,000 | 1,554,000 | 1,906,000 |
| Total current liabilities | US$ in thousands | 3,150,000 | 2,151,000 | 2,811,000 | 2,141,000 | 2,881,000 |
| Current ratio | 0.39 | 0.65 | 0.44 | 0.73 | 0.66 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,215,000K ÷ $3,150,000K
= 0.39
The current ratio of American Water Works has exhibited fluctuating trends over the past five years. In December 2020, the current ratio was 0.66, indicating that the company had $0.66 in current assets for every $1 in current liabilities. By December 2021, the ratio increased slightly to 0.73, suggesting a better ability to cover short-term obligations. However, in December 2022, there was a significant decrease in the current ratio to 0.44, signaling potential liquidity challenges. The ratio improved in December 2023 to 0.65 but then dropped again to 0.39 by December 2024, highlighting a concerning decline in the company's ability to meet its current liabilities with available current assets. Overall, the fluctuating current ratio indicates variability in American Water Works' short-term liquidity position, which may warrant further investigation and monitoring.
Peer comparison
Dec 31, 2024