American States Water Company (AWR)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 0.82 0.69 0.70 1.15 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
Quick ratio 0.33 0.20 0.14 0.26 0.43 0.22 0.23 0.10 0.17 0.11 0.11 0.25 0.46 0.27 0.33 0.27 0.78 0.38 0.23 0.21
Cash ratio 0.09 0.05 0.01 0.10 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

American States Water Company's liquidity ratios have shown some fluctuations over the reporting periods.

The Current Ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, has been below 1 for several quarters, indicating that the company may have had difficulty meeting its current obligations using its current assets alone. In recent periods, the ratio improved, reaching levels above 1, which suggests a healthier liquidity position.

The Quick Ratio, a more stringent measure of liquidity that excludes inventory from current assets, also displayed variability over time. The ratio was generally low, signaling potential challenges in meeting short-term obligations without relying on inventory. However, similar to the Current Ratio, improvements were seen in some quarters.

The Cash Ratio, representing the proportion of cash and cash equivalents to current liabilities, was consistently low throughout the periods analyzed. While having some cash on hand is important for meeting immediate obligations, the company's cash position may not have been sufficient, as indicated by the low Cash Ratios.

Overall, American States Water Company's liquidity ratios indicate a mix of strengths and challenges in terms of its ability to meet short-term financial obligations. It would be important for the company to continue monitoring and managing its liquidity position to ensure financial stability.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days -109.88 -95.87 -91.91 -96.27 -74.95 -106.22 -106.96 -98.90 -121.54 -103.63 -110.34 -105.39 -76.60 -100.81 -102.39 -90.61 -80.83 -67.57 -73.22 -62.12

The cash conversion cycle of American States Water Company has been experiencing fluctuations over the period from March 31, 2020, to December 31, 2024. The company has shown a negative cash conversion cycle throughout the period, indicating efficient management of its cash flow and working capital.

The trend of the cash conversion cycle shows a general decrease in the number of days required to convert investments in working capital back into cash during this period. The cycle reached its lowest point around June 30, 2022, at -110.34 days, suggesting that the company was able to quickly convert its investments into cash.

However, there were some fluctuations in the cash conversion cycle from March 31, 2022, to December 31, 2024, with the cycle fluctuating between -74.95 days and -121.54 days. This variation may indicate changes in the company's efficiency in managing its working capital during these specific periods.

Overall, the consistently negative cash conversion cycle implies that American States Water Company has been effectively managing its working capital, efficiently turning investments in inventory and accounts receivable into cash. This efficiency in cash conversion can be a positive indicator of the company's financial health and operational efficiency.