Chesapeake Utilities Corporation (CPK)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents US$ in thousands 4,904 6,204 4,976 3,499 6,985
Short-term investments US$ in thousands 10,776
Total current liabilities US$ in thousands 386,384 369,023 376,394 329,032 423,324
Cash ratio 0.01 0.02 0.01 0.04 0.02

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($4,904K + $—K) ÷ $386,384K
= 0.01

The cash ratio of Chesapeake Utilities Corp has fluctuated over the past five years, with values ranging from 0.08 to 0.18. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher ratio indicates a stronger liquidity position, as the company has more cash on hand to meet its obligations.

In this case, the cash ratio has generally been low, indicating that Chesapeake Utilities Corp may have a limited ability to cover its short-term liabilities solely with its available cash reserves. The decrease in the cash ratio from 2022 to 2023 suggests that the company's liquidity position weakened during this period.

It is important to further analyze the components that contribute to the cash ratio, as a low cash ratio could potentially signal liquidity challenges or inefficiencies in cash management. Additionally, comparing the cash ratio to industry benchmarks and the company's historical performance can provide further insights into Chesapeake Utilities Corp's liquidity position.


Peer comparison

Dec 31, 2023

Company name
Symbol
Cash ratio
Chesapeake Utilities Corporation
CPK
0.01
ONEOK Inc
OKE
0.10
Southwest Gas Holdings Inc
SWX
0.81