American Water Works (AWK)

Current ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total current assets	US$ in thousands	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	1,285,000	799,000	741,000	691,000
Total current liabilities	US$ in thousands	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	2,045,000	1,488,000	1,317,000	2,156,000
Current ratio		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	0.63	0.54	0.56	0.32

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,389,000K ÷ $2,151,000K
= 0.65

The current ratio of American Water Works Co. Inc. has been fluctuating over the past eight quarters, ranging from a low of 0.44 to a high of 1.13. In Q3 2023, the company had a current ratio of 1.03, indicating that it had $1.03 in current assets for every $1 in current liabilities. This suggests a relatively healthy liquidity position. However, in Q4 2023, the current ratio decreased to 0.65, signaling a decline in liquidity compared to the previous quarter.

The downward trend in the current ratio from Q3 to Q4 2023 may raise concerns about the company's ability to meet its short-term financial obligations. Management should closely monitor the components of current assets and liabilities to ensure adequate liquidity levels and proper management of working capital. Furthermore, investors and creditors may also pay attention to the trend in the current ratio as it reflects the company's short-term financial health and ability to manage its current obligations effectively.