American States Water Company (AWR)

Quick 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
Cash	US$ in thousands	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	1,334	10,398	1,516	1,844
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	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	47,074	49,521	43,854	33,161
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
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

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($14,073K + $—K + $57,818K) ÷ $166,623K
= 0.43

The quick ratio of American States Water Co. has shown some fluctuations over the past eight quarters. In Q4 2023, the quick ratio was 1.13, indicating that the company had $1.13 in liquid assets available to cover each $1 of current liabilities. This suggests a strong ability to meet short-term obligations with liquid assets.

In the previous quarters, the quick ratio was less favorable, with values ranging from 0.34 to 0.90. A quick ratio below 1.0 may raise concerns about the company's liquidity position and its ability to cover short-term obligations without relying on selling inventory or obtaining additional financing.

The significant improvement in the quick ratio from Q3 2023 to Q4 2023 suggests that American States Water Co. may have increased its liquid assets relative to its current liabilities, indicating a potential enhancement in its liquidity position.

Overall, while the quick ratio has fluctuated, the recent improvement in Q4 2023 is a positive sign for the company's short-term liquidity management. It is important for investors and stakeholders to monitor this ratio over time to assess the company's ability to meet its short-term obligations effectively.