American States Water Company (AWR)

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	205,978	191,685	168,910	139,690	151,294	138,790	138,970	130,856	138,052	143,659	136,312	118,912	157,115	139,407	137,026	127,405	122,456	132,469	122,025	116,776
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
Current ratio		1.24	0.98	1.20	0.45	0.38	0.37	0.40	0.82	0.89	0.95	1.22	1.05	1.33	1.23	0.86	0.96	1.06	1.11	1.15	1.08

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $205,978K ÷ $166,623K
= 1.24

The current ratio of American States Water Co. has shown fluctuations over the past eight quarters. In Q4 2023, the current ratio was 1.24, indicating the company had $1.24 in current assets to cover each dollar of current liabilities. This represents an improvement compared to the previous quarters, where the current ratio was below 1 in Q1 2023 (0.45), Q4 2022 (0.38), and Q3 2022 (0.37), suggesting potential liquidity concerns during those periods.

While the current ratio increased to 1.20 in Q2 2023 and 0.98 in Q3 2023, it remained below the ideal ratio of 2:1. However, in Q2 2022 and Q1 2022, the company showed better liquidity positions with current ratios of 0.40 and 0.82, respectively.

Overall, the trend in the current ratio indicates some volatility in the company's liquidity position. It is essential for stakeholders to monitor this ratio closely to ensure that the company can meet its short-term obligations effectively.