American States Water Company (AWR)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	26,661	14,073	5,997	4,963	36,737
Short-term investments	US$ in thousands	—	—	11,847	4,441	1,224
Receivables	US$ in thousands	66,210	57,818	50,770	61,799	55,101
Total current liabilities	US$ in thousands	285,525	166,623	396,522	155,574	118,572
Quick ratio		0.33	0.43	0.17	0.46	0.78

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($26,661K + $—K + $66,210K) ÷ $285,525K
= 0.33

The quick ratio of American States Water Company has shown a declining trend over the years, starting at 0.78 on December 31, 2020, and dropping to 0.46 on December 31, 2021. The ratio continued to decrease to 0.17 on December 31, 2022, before experiencing a slight increase to 0.43 on December 31, 2023, followed by a decrease to 0.33 on December 31, 2024.

This downward trend in the quick ratio indicates a potential liquidity challenge for the company as it may struggle to meet its short-term obligations with its current liquid assets. It is essential for American States Water Company to closely monitor and manage its liquidity position to ensure it maintains the ability to cover its short-term liabilities effectively. Further analysis of the company's cash flows and working capital management strategies may be necessary to address any liquidity concerns highlighted by the declining quick ratio.