American Water Works (AWK)

Current 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
Total current assets	US$ in thousands	1,215,000	1,237,000	1,165,000	1,587,000	1,389,000	1,804,000	1,989,000	1,338,000	1,250,000	1,017,000	1,018,000	853,000	1,554,000	1,590,000	1,570,000	1,466,000	1,906,000	1,967,000	1,896,000	1,801,000
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
Current ratio		0.39	0.58	0.64	0.85	0.65	1.03	1.13	0.71	0.44	0.48	0.59	0.52	0.73	0.86	0.92	0.60	0.66	0.87	0.90	0.65

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 fluctuated over the past few years, indicating changes in the company's liquidity position. The ratio was below 1 for most of the period, suggesting that the company may have had difficulty meeting its short-term obligations with its current assets alone.

The ratio increased to above 1 in the latter part of 2023 and early 2024, indicating an improvement in the company's ability to cover its short-term liabilities with its current assets. However, the ratio dropped significantly by the end of 2024, falling below 0.5, which may raise concerns about the company's liquidity position.

Overall, the current ratio trend for American Water Works shows variability, highlighting the importance of closely monitoring the company's liquidity management to ensure it can meet its short-term financial obligations effectively.