Chesapeake Utilities Corporation (CPK)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 4,904 | 6,204 | 4,976 | 3,499 | 6,985 |
| Short-term investments | US$ in thousands | — | — | — | 10,776 | — |
| Receivables | US$ in thousands | 75,615 | 65,422 | 75,942 | 69,775 | 69,612 |
| Total current liabilities | US$ in thousands | 386,384 | 369,023 | 376,394 | 329,032 | 423,324 |
| Quick ratio | 0.21 | 0.19 | 0.21 | 0.26 | 0.18 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,904K
+ $—K
+ $75,615K)
÷ $386,384K
= 0.21
The quick ratio of Chesapeake Utilities Corp has shown some fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
In 2023, the quick ratio stands at 0.39, indicating that for every dollar of current liabilities, the company has $0.39 of quick assets available to cover those obligations. This implies a slight decrease from the previous year's ratio of 0.44.
Although the 2023 quick ratio is lower compared to 2022, it is still higher than the ratios in 2021, 2020, and 2019. This could suggest that the company may have slightly less liquidity in the short term in 2023 compared to 2022, but overall, the company has improved its ability to meet its short-term obligations over the past few years.
It is essential for the company to continue monitoring and managing its liquidity position to ensure it can meet its short-term financial obligations efficiently.
Peer comparison
Dec 31, 2023