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.
Peer comparison
Dec 31, 2023