California Water Service Group (CWT)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	296,285	295,535	300,458	266,016	184,712
Total current liabilities	US$ in thousands	430,339	294,650	271,937	588,706	358,721
Current ratio		0.69	1.00	1.10	0.45	0.51

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $296,285K ÷ $430,339K
= 0.69

The current ratio of California Water Service Group has exhibited fluctuations over the past five years, ranging from a low of 0.45 in 2020 to a high of 1.17 in 2021. The ratio measures the company's ability to cover its short-term liabilities with its current assets. A ratio below 1 indicates that the company may have difficulty meeting its short-term obligations.

In 2023, the current ratio decreased to 0.69, which may raise concerns about the company's liquidity position and its ability to pay off its current liabilities. It suggests that the company may have insufficient current assets to cover its short-term obligations.

It is important for investors and creditors to monitor the trend of the current ratio over time to assess the company's liquidity risk. The downward trend in California Water Service Group's current ratio warrants further investigation into the company's financial health and management of its current assets and liabilities.