American States Water Company (AWR)

Quick ratio

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 US$ in thousands 26,661 16,469 3,583 17,007 14,073 8,604 1,026 2,126 5,997 2,258 10,825 10,126 4,963 7,141 5,359 6,951 36,737 8,127 6,496 429
Short-term investments US$ in thousands — — — — — 1,525 4,657 6,669 11,847 7,569 1,116 7,020 4,441 — 1,188 1,206 1,224 1,242 — —
Receivables US$ in thousands 66,210 46,555 39,076 28,897 57,818 32,659 27,074 21,328 50,770 31,920 27,213 23,398 61,799 33,375 29,663 22,084 55,101 33,892 30,510 27,034
Total current liabilities US$ in thousands 285,525 321,432 299,118 178,577 166,623 195,007 140,930 307,690 396,522 373,179 348,736 160,154 155,574 151,120 111,351 113,010 118,572 113,456 158,687 132,520
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

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 fluctuations over the period from March 31, 2020, to December 31, 2024. The quick ratio, also known as the acid-test ratio, measures the company's ability to meet its short-term liabilities with its most liquid assets.

Initially, the quick ratio was very low at 0.21 on March 31, 2020. Over the next few quarters, the ratio improved, reaching 0.78 by December 31, 2020, indicating a significant enhancement in the company's ability to cover its short-term obligations.

Subsequently, the quick ratio experienced a decrease, falling to 0.25 by March 31, 2022. This decline continued, with the ratio hitting its lowest point at 0.10 on March 31, 2023. The sharp drop in the quick ratio during this period may raise concerns about the company's liquidity and ability to meet immediate financial commitments.

However, there was a partial recovery in the quick ratio, reaching 0.33 by December 31, 2024. This improvement suggests that the company was able to enhance its liquidity position to some extent by the end of the analyzed period.

Overall, the fluctuating trend in American States Water Company's quick ratio indicates variations in its ability to quickly convert its current assets into cash to cover short-term liabilities. Investors and stakeholders may use this ratio as a tool to assess the company's liquidity risk and financial health.