American States Water Company (AWR)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	26,661	14,073	5,997	4,963	36,737
Short-term investments	US$ in thousands	—	—	11,847	4,441	1,224
Total current liabilities	US$ in thousands	285,525	166,623	396,522	155,574	118,572
Cash ratio		0.09	0.08	0.05	0.06	0.32

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($26,661K + $—K) ÷ $285,525K
= 0.09

The cash ratio of American States Water Company has decreased over the past five years. In December 2020, the cash ratio was 0.32, indicating that the company had $0.32 in cash and cash equivalents for every $1 of current liabilities. However, by December 2024, the cash ratio had decreased to 0.09. This suggests that the company's ability to cover its short-term obligations with its available cash has weakened over the period under review. While the cash ratio fluctuated slightly between 2021 and 2024, it remained at relatively low levels, signaling a potential liquidity risk for the company. Further analysis and monitoring of the cash position and liquidity management of American States Water Company may be necessary to ensure its financial health and stability.