American States Water Company (AWR)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 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 | 0.42 | 0.50 | 0.43 | 0.33 |
| 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 |
The current ratio of American States Water Co. has shown variability over the quarters, ranging from 0.38 to 1.24. This ratio indicates the company's ability to cover its short-term obligations with its current assets. A ratio above 1 suggests a company is able to pay its current liabilities, with higher values indicating stronger liquidity. The company's current ratio has generally fluctuated, with Q4 2023 and Q2 2023 showing a stronger position compared to the previous quarters.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also exhibited fluctuations for American States Water Co. over the quarters, ranging from 0.34 to 1.13. This ratio signifies the company's ability to meet its short-term obligations without relying on the sale of inventory. Similar to the current ratio, variability is evident, with the company's quick ratio improving notably in Q4 2023 compared to previous quarters.
The cash ratio, representing the most conservative measure of liquidity by focusing solely on cash and cash equivalents, has also shown fluctuations for American States Water Co., varying between 0.11 and 0.45. This ratio highlights the company's ability to cover its current liabilities purely with cash on hand. The company's cash ratio has seen fluctuations over the quarters, with Q4 2023 showing a higher value compared to the preceding quarters, indicating improved liquidity in terms of available cash.
Overall, the liquidity ratios of American States Water Co. highlight the company's changing ability to meet its short-term obligations across the quarters. The fluctuations in these ratios suggest varying levels of liquidity, with Q4 2023 indicating improved liquidity compared to certain previous quarters. Monitoring these ratios over time can provide insights into the company's liquidity management and financial health.
Additional liquidity measure
| 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 conversion cycle | days | -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 | -64.56 | -52.83 | -39.93 | -38.56 |
The cash conversion cycle of American States Water Co. has shown variability over the past eight quarters. The company has managed to improve its cash conversion cycle from a high of -173.04 days in Q4 2022 to a low of -105.64 days in Q4 2023. This indicates that the company has been able to efficiently convert its investments in inventory and accounts receivable into cash within a shorter timeframe.
The negative values of the cash conversion cycle suggest that the company is able to generate cash from its operations before having to pay its suppliers. This reflects a strong working capital management and efficient operations in terms of converting sales into cash.
Overall, the trend in the cash conversion cycle of American States Water Co. indicates improved efficiency in managing its working capital and converting its resources into cash, which is a positive sign for the company's financial health and liquidity position.