California Water Service Group (CWT)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	39,591	62,100	78,380	44,555	42,653
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	112,779	109,151	111,997	98,425	119,349
Total current liabilities	US$ in thousands	430,339	294,650	271,937	588,706	358,721
Quick ratio		0.35	0.58	0.70	0.24	0.45

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($39,591K + $—K + $112,779K) ÷ $430,339K
= 0.35

The quick ratio of California Water Service Group has been fluctuating over the past five years. In 2023, the quick ratio decreased to 0.55 from 0.88 in 2022, indicating a decline in the company's ability to meet short-term obligations with its most liquid assets. This decrease may raise concerns about the company's liquidity position in the current year.

In 2021, the quick ratio was relatively healthy at 1.13, showing an improvement from 0.44 in 2020 and 0.49 in 2019. A quick ratio above 1 generally indicates that the company has sufficient liquid assets to cover its short-term liabilities, which was the case for California Water Service Group in 2021.

Overall, the trend in the quick ratio for California Water Service Group suggests some variability in the company's short-term liquidity position over the years, with fluctuations indicating potential challenges in managing short-term obligations. Further analysis of the company's current assets and liabilities is recommended to assess the underlying reasons for these changes in the quick ratio.