Chesapeake Utilities Corporation (CPK)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 7,900 | 4,904 | 6,204 | 4,976 | 3,499 |
| Short-term investments | US$ in thousands | — | — | — | — | 10,776 |
| Total current liabilities | US$ in thousands | 419,400 | 386,384 | 369,023 | 376,433 | 329,032 |
| Cash ratio | 0.02 | 0.01 | 0.02 | 0.01 | 0.04 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($7,900K
+ $—K)
÷ $419,400K
= 0.02
The cash ratio of Chesapeake Utilities Corporation has shown some fluctuation over the years based on the provided data. As of December 31, 2020, the company had a cash ratio of 0.04, indicating that it had $0.04 in cash and cash equivalents for every dollar of current liabilities.
However, by December 31, 2021, the cash ratio had decreased to 0.01, suggesting a lower level of liquidity compared to the previous year. This could indicate potential challenges in meeting short-term obligations solely with cash on hand.
In the following years, the cash ratio improved slightly, reaching 0.02 by December 31, 2022 and December 31, 2024. Despite the improvement, the ratios remained relatively low, signaling that Chesapeake Utilities Corporation may have limited cash reserves compared to its current liabilities.
Overall, the trend in the cash ratio of the company indicates a need for careful monitoring of liquidity management to ensure the ability to meet short-term financial obligations efficiently in the future.
Peer comparison
Dec 31, 2024