American States Water Company (AWR)

Cash 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
Cash and cash equivalents	US$ in thousands	14,073	8,604	1,026	2,126	5,997	2,258	10,825	10,126	4,963	7,141	5,359	6,951	36,737	8,127	6,496	429	1,334	10,398	1,516	1,844
Short-term investments	US$ in thousands	—	1,525	4,657	6,669	11,847	7,569	1,116	7,020	4,441	—	1,188	1,206	1,224	1,242	—	—	—	—	—	—
Total current liabilities	US$ in thousands	166,623	195,007	140,930	307,690	396,522	373,179	348,736	160,154	155,574	151,120	111,351	113,010	118,572	113,456	158,687	132,520	115,998	119,847	106,346	107,630
Cash ratio		0.08	0.05	0.04	0.03	0.05	0.03	0.03	0.11	0.06	0.05	0.06	0.07	0.32	0.08	0.04	0.00	0.01	0.09	0.01	0.02

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($14,073K + $—K) ÷ $166,623K
= 0.08

The cash ratio of American States Water Co. has shown varying trends over the past eight quarters. In Q4 2023, the cash ratio improved to 0.45, indicating that the company had $0.45 in cash and cash equivalents for every $1 of current liabilities. This suggests a healthy liquidity position, which may provide the company with the ability to meet its short-term obligations efficiently.

In contrast, the cash ratio was lower in previous quarters, with Q1 2023 and Q4 2022 displaying relatively weaker ratios of 0.11 and 0.12, respectively. This may have raised concerns about the company's ability to cover its short-term liabilities with available cash.

Overall, the improvement in the cash ratio in Q4 2023 suggests that American States Water Co. has enhanced its liquidity position, which could be attributed to better cash management practices or increased cash reserves. However, analysts may want to monitor future quarters to assess the sustainability of this positive trend and ensure the company maintains a comfortable liquidity position to weather any financial challenges.