Chesapeake Utilities Corporation (CPK)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 7,900 | 4,904 | 6,204 | 4,976 | 3,499 |
| Short-term investments | US$ in thousands | — | — | — | — | 10,776 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 419,400 | 386,384 | 369,023 | 376,433 | 329,032 |
| Quick ratio | 0.02 | 0.01 | 0.02 | 0.01 | 0.04 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($7,900K
+ $—K
+ $—K)
÷ $419,400K
= 0.02
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. For Chesapeake Utilities Corporation, the quick ratio has shown a declining trend over the past five years.
As of December 31, 2020, the quick ratio was 0.04, indicating that the company had $0.04 in liquid assets available to cover each dollar of its current liabilities. This ratio dropped to 0.01 by December 31, 2021, and remained at the same level through December 31, 2023.
A quick ratio of 0.01 suggests that the company may face challenges in meeting its short-term obligations with its readily available liquid assets. However, by December 31, 2022, and December 31, 2024, the quick ratio improved slightly to 0.02.
Overall, the fluctuating quick ratio of Chesapeake Utilities Corporation raises concerns about its liquidity position and ability to cover immediate financial obligations. Investors and stakeholders may need to monitor this ratio closely to assess the company's short-term financial health and risk exposure.
Peer comparison
Dec 31, 2024