H2O America (HTO)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	11,114	9,723	12,344	10,908	5,269
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	261,173	342,974	268,322	203,271	350,795
Cash ratio		0.04	0.03	0.05	0.05	0.02

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($11,114K + $—K) ÷ $261,173K
= 0.04

The cash ratio of H2O America over the period from December 31, 2020, to December 31, 2024, demonstrates relatively low liquidity levels relative to its current liabilities. Specifically, the ratio was 0.02 in 2020, indicating that the company's cash holdings covered only 2% of its current liabilities at that time. By the end of 2021 and 2022, the ratio increased to 0.05, signifying an improvement whereby cash holdings covered 5% of current liabilities—though still remaining below a generally comfortable liquidity threshold.

In 2023, the cash ratio declined slightly back to 0.03, reflecting a decrease in liquidity or a shift in cash holdings relative to current liabilities. The ratio then increased modestly again to 0.04 in 2024, suggesting a slight strengthening in cash position relative to short-term obligations but still remaining below 0.05.

Overall, the cash ratio for H2O America during this period indicates that the company maintained a low level of cash liquidity relative to its current liabilities throughout these years. This trend suggests that the company relies on other sources of liquidity or current assets beyond cash to meet short-term obligations. The fluctuations in the ratio are minimal, reflecting a relatively stable but conservative cash position strategy that may impact the firm's immediate liquidity buffer.