Chesapeake Utilities Corporation (CPK)

Liquidity ratios

	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
Current ratio	0.49	0.38	0.38	0.46	0.48	0.48	0.54	0.65	0.53	0.51	0.50	0.55	0.46	0.38	0.34	0.41	0.41	0.33	0.23	0.28
Quick ratio	0.02	0.00	0.02	0.00	0.01	0.01	0.02	0.01	0.02	0.01	0.01	0.02	0.01	0.05	0.05	0.05	0.04	0.04	0.01	0.01
Cash ratio	0.02	0.00	0.02	0.00	0.01	0.01	0.02	0.01	0.02	0.01	0.01	0.02	0.01	0.05	0.05	0.05	0.04	0.04	0.01	0.01

The liquidity ratios of Chesapeake Utilities Corporation show varying levels of liquidity over the reported periods.

1. Current Ratio: The current ratio measures the company's ability to cover its short-term obligations using its current assets. A current ratio below 1 indicates potential liquidity issues. Chesapeake Utilities Corporation had a consistently low current ratio in 2020 and 2021, indicating a potential difficulty in meeting short-term obligations. However, the ratio improved significantly in 2022 and 2023, reaching its peak at the end of March 2024 at 0.46.

2. Quick Ratio: The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Chesapeake Utilities Corporation had very low quick ratios throughout 2020, 2021, and the first half of 2022, indicating a significant reliance on inventory to meet short-term obligations. The quick ratio improved slightly in 2022 and 2023, with some fluctuations, ending at 0.02 as of June 30, 2024.

3. Cash Ratio: The cash ratio is the most conservative liquidity ratio, focusing solely on the company's ability to cover short-term liabilities with cash and cash equivalents. Chesapeake Utilities Corporation's cash ratio was consistently low at 0.01 or 0.00 throughout most of the reporting periods, indicating a limited ability to cover short-term obligations purely with cash. The ratio increased slightly in the latter half of 2023 and 2024, ending at 0.02 as of December 31, 2024.

Overall, Chesapeake Utilities Corporation's liquidity ratios show a mix of low and improving liquidity positions over the reported periods, with notable improvements in the current ratio in 2022 and 2023. The company should continue monitoring and managing its liquidity positions to ensure it can meet its short-term obligations effectively.

Additional liquidity measure

		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 conversion cycle	days	6.68	21.56	22.86	24.68	25.68	21.10	20.63	21.72	21.63	17.76	18.91	19.29	21.76	15.01	14.09	13.79	14.13	11.75	11.29	11.63

The cash conversion cycle for Chesapeake Utilities Corporation has shown fluctuations over the years. In the most recent data available, as of December 31, 2024, the company's cash conversion cycle was notably low at 6.68 days. This suggests that the company is efficiently managing its cash flow and converting its investments into cash relatively quickly.

However, it is important to note that the cash conversion cycle increased to 25.68 days by December 31, 2023, indicating a delay in converting its investments into cash during that period. This significant increase could potentially be a red flag, as a longer cash conversion cycle may indicate inefficiencies in managing working capital or collecting receivables.

Overall, Chesapeake Utilities Corporation should continue monitoring its cash conversion cycle closely to ensure optimal efficiency in converting its investments into cash and managing its working capital effectively. Fluctuations in this ratio can provide valuable insights into the company's liquidity management and operational efficiency.