California Water Service Group (CWT)

Liquidity ratios

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
Current ratio 0.69 0.79 0.86 0.77 1.00 1.05 0.97 0.97 1.10 1.09 0.84 0.46 0.45 0.51 0.46 0.53 0.51 0.64 0.62 0.50
Quick ratio 0.35 0.47 0.50 0.43 0.58 0.73 0.66 0.61 0.70 0.78 0.53 0.27 0.24 1.90 0.37 0.43 0.45 0.47 0.45 0.34
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

The liquidity ratios of California Water Service Group have exhibited some fluctuation over the past eight quarters.

The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has been below 1 in the most recent four quarters, indicating potential liquidity concerns. The ratio improved from Q1 2023 to Q2 2023 but then decreased in the subsequent quarters. A current ratio below 1 may suggest that the company could struggle to meet its short-term debt obligations.

The quick ratio, which provides a more stringent assessment of liquidity by excluding inventory from current assets, also paints a picture of liquidity challenges for California Water Service Group. Similar to the current ratio, the quick ratio has been consistently below 1 in the past eight quarters. The ratio improved from Q1 2023 to Q2 2023 but has been declining since then.

The cash ratio, which is the most conservative liquidity measure by focusing solely on cash and cash equivalents, shows a declining trend over the past two years. The cash ratio decreased steadily from Q1 2022 to Q4 2023, indicating a potential reduction in the company's ability to cover its immediate liabilities with cash on hand only.

Overall, the liquidity ratios of California Water Service Group suggest ongoing challenges in meeting short-term financial obligations, particularly in terms of having sufficient liquid assets to cover liabilities. Investors and stakeholders may need to closely monitor the company's liquidity position to assess the potential impact on its financial health and operational sustainability.

Additional liquidity measure

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 conversion cycle days -83.65 -64.09 -62.81 -60.66 -79.89 -81.33 -70.57 -83.72 -83.61 -78.99 -70.39 -71.76 -80.82 -68.41 -78.78 -58.02 -44.12 -55.40 -49.50 -47.68

The cash conversion cycle of California Water Service Group has shown a fluctuating trend over the past eight quarters. In Q4 2023, the company's cash conversion cycle improved significantly to -109.84 days compared to the previous quarter, indicating that the company is managing its working capital more efficiently.

Despite the improvement, the cash conversion cycle remains negative, implying that California Water Service Group is able to convert its investment in inventory and accounts receivable into cash quickly. This suggests effective management of its operating cycle and cash flow.

Overall, the trend in the cash conversion cycle over the past two years shows fluctuations, with some quarters showing more efficiency in managing working capital than others. The company should continue to monitor and manage its cash conversion cycle effectively to ensure optimal utilization of resources and sustained financial performance.