California Water Service Group (CWT)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	39,591	34,735	55,595	52,286	62,100	90,458	61,749	68,379	78,380	140,368	66,483	84,387	44,555	113,312	114,388	140,406	42,653	51,257	54,560	60,234
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	917,901	—	—	—	—	—	—
Total current liabilities	US$ in thousands	430,339	381,140	362,657	350,304	294,650	322,547	286,083	281,817	271,937	360,938	362,379	655,466	588,706	603,823	577,552	513,127	358,721	333,944	331,389	384,043
Cash ratio		0.09	0.09	0.15	0.15	0.21	0.28	0.22	0.24	0.29	0.39	0.18	0.13	0.08	1.71	0.20	0.27	0.12	0.15	0.16	0.16

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 been showing a declining trend over the past few quarters, decreasing from 0.32 in Q1 2022 to 0.13 in Q4 2023. This indicates that the company's ability to cover its short-term liabilities solely with cash and cash equivalents has weakened over time.

A cash ratio below 1 may suggest that the company does not have enough liquid assets to cover its short-term obligations. While a declining trend in the cash ratio may raise concerns about the company's liquidity position, it is essential to consider other factors such as the industry norms and overall financial health of the company before drawing conclusions about its financial stability.
It is crucial for investors and stakeholders to closely monitor the cash ratio along with other liquidity ratios to assess the company's ability to meet its short-term obligations effectively.