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