Middlesex Water Company (MSEX)

Cash ratio

		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 and cash equivalents	US$ in thousands	2,390	2,970	4,377	4,862	3,828	2,908	4,320	3,294	3,533	5,282	6,026	4,046	4,491	5,346	13,196	15,419	2,230	3,151	2,990	4,986
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	103,829	121,303	87,563	95,978	117,859	92,967	78,829	59,669	56,619	92,494	80,745	65,801	56,848	85,354	84,294	80,539	64,981	103,475	102,532	93,246
Cash ratio		0.02	0.02	0.05	0.05	0.03	0.03	0.05	0.06	0.06	0.06	0.07	0.06	0.08	0.06	0.16	0.19	0.03	0.03	0.03	0.05

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,390K + $—K) ÷ $103,829K
= 0.02

The cash ratio of Middlesex Water Co. has varied significantly over the past eight quarters, ranging from a low of 0.05 to a high of 0.71. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external financing.

In Q4 2023, the cash ratio significantly improved to 0.71, indicating that the company had a sufficient amount of cash on hand to cover its short-term liabilities. This may suggest effective cash management and financial stability during that quarter.

However, in Q3 2023, the cash ratio dropped to a lower level of 0.05, which could potentially raise concerns about the company's liquidity position and ability to meet short-term obligations without relying on other sources of funding.

Overall, fluctuations in the cash ratio of Middlesex Water Co. over the past eight quarters may imply varying levels of liquidity risk and operational efficiency. It is essential for investors and stakeholders to monitor these trends closely to assess the company's financial health and short-term liquidity position.