California Water Service Group (CWT)

Overall, California Water Service Group's liquidity ratios demonstrate an improving trend over the period from March 31, 2020, to December 31, 2024.

The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, shows a significant improvement from 0.53 on March 31, 2020, to 1.00 on December 31, 2022. This indicates that the company's liquidity position strengthened during this period, although there was a slight decline to 0.60 on December 31, 2024.

The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, also demonstrates an upward trend overall. The ratio increased from 0.27 on March 31, 2020, to 0.17 on March 31, 2024, indicating that the company's ability to meet its short-term obligations with its most liquid assets improved.

The cash ratio, another strict liquidity measure that considers only cash and cash equivalents, remained relatively stable throughout the period, hovering around 0.15 to 0.20. This suggests that California Water Service Group maintained a consistent level of cash reserves relative to its current liabilities.

In conclusion, California Water Service Group's liquidity ratios show a positive trend, with improvements in the current and quick ratios, indicating a strengthening liquidity position over the analyzed period. It is essential for the company to continue monitoring and maintaining its liquidity to ensure its ability to meet its short-term obligations.

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Additional liquidity measure

The cash conversion cycle of California Water Service Group has shown some fluctuations over the reported periods.

From March 31, 2020, to December 31, 2020, the company's cash conversion cycle remained relatively stable, ranging between 10.20 to 10.58 days. However, there was a slight increase observed in the cycle towards the end of 2020.

From March 31, 2021, to June 30, 2021, there was a noticeable increase in the cash conversion cycle, reaching 11.33 days. This uptrend continued until December 31, 2021, where the cycle peaked at 11.31 days.

During the first half of 2022, there was a significant spike in the cash conversion cycle, reaching 12.39 days by June 30, 2022. This trend continued into the second half of the year, with the cycle reaching 14.47 days by December 31, 2022.

The cash conversion cycle showed a decrease in the first half of 2023, dropping to 15.59 days by March 31, 2023, before increasing again to 17.93 days by September 30, 2023. However, there was a notable decrease in the cycle by December 31, 2023, where it fell to 15.14 days.

By March 31, 2024, there was a further decline in the cash conversion cycle to 13.47 days, followed by a slight increase to 14.90 days by December 31, 2024.

Overall, the cash conversion cycle of California Water Service Group has exhibited fluctuations over the reporting periods, with some periods of increase and decrease. Monitoring and managing the cash conversion cycle is crucial for the company to optimize its working capital efficiency and cash flow management.