American States Water Company (AWR)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	233,346	205,978	151,294	138,052	157,115
Total current liabilities	US$ in thousands	285,525	166,623	396,522	155,574	118,572
Current ratio		0.82	1.24	0.38	0.89	1.33

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $233,346K ÷ $285,525K
= 0.82

The current ratio of American States Water Company has varied over the past five years. As of December 31, 2020, the company had a current ratio of 1.33, indicating that it had $1.33 in current assets for every $1 in current liabilities. However, this ratio deteriorated significantly by December 31, 2022, dropping to 0.38, suggesting potential liquidity concerns as the company had only $0.38 in current assets for every $1 in current liabilities. By December 31, 2023, the current ratio improved to 1.24, indicating a better liquidity position.

The current ratio further decreased to 0.89 by December 31, 2021, signaling a potential liquidity strain for the company. Lastly, as of December 31, 2024, the ratio stood at 0.82, still below the ideal threshold of 1.

Overall, the trend in the current ratio of American States Water Company shows fluctuations and potential liquidity challenges, especially in 2022, although there have been some improvements in subsequent years. It is essential for the company to monitor and manage its liquidity position to ensure it can meet its short-term obligations efficiently.