California Water Service Group (CWT)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	39,591	62,100	78,380	44,555	42,653
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	430,339	294,650	271,937	588,706	358,721
Cash ratio		0.09	0.21	0.29	0.08	0.12

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($39,591K + $—K) ÷ $430,339K
= 0.09

The cash ratio for California Water Service Group has fluctuated over the past five years. In 2023, the cash ratio stands at 0.13, exhibiting a significant decrease from the previous year's ratio of 0.29. This decline indicates a lower proportion of cash and cash equivalents readily available to cover current liabilities in 2023.

Comparing to the ratio in 2021, which was 0.39, the current cash position appears weaker in terms of liquidity. The sharp drop in the cash ratio from 2021 to 2023 suggests potential challenges in meeting short-term obligations with cash on hand.

Although the cash ratio in 2020 was 0.11, the current ratio remains higher than that year. However, the 2023 ratio of 0.13 still represents a modest level of cash reserves relative to current liabilities, indicating a reduced ability to cover short-term debt obligations solely with available cash.

Looking at 2019, when the cash ratio was 0.16, the current ratio of 0.13 in 2023 is slightly lower. This suggests a decrease in the company's ability to cover current liabilities with cash and cash equivalents compared to four years ago.

Overall, the declining trend in the cash ratio for California Water Service Group from 2021 to 2023 indicates a potential need for improved cash management strategies to ensure the company can meet its short-term financial obligations effectively.