SJW Group Common Stock (SJW)

Based on the provided data for SJW Group Common Stock, the liquidity ratios show significant fluctuations over the years:

1. Current Ratio:
- The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, increased from 0.36 in 2020 to 2.82 in 2024. This indicates an improvement in the company's short-term liquidity position over the years, with the ratio exceeding 1 in 2024, which is generally considered healthy.

2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. SJW Group's quick ratio fluctuated from 0.06 in 2020 to -0.01 in 2023 and then increased to 0.05 in 2024. A negative quick ratio in 2023 suggests that the company may have had difficulties meeting its immediate short-term obligations without relying on inventory.

3. Cash Ratio:
- The cash ratio, which is the most conservative liquidity ratio, improved from 0.06 in 2020 to 0.05 in 2024 for SJW Group. This ratio indicates the company's ability to cover its current liabilities with its cash and cash equivalents alone, showing a relatively stable position over the years.

Overall, the analysis of SJW Group's liquidity ratios indicates improvements in the company's ability to meet its short-term obligations, with the current ratio significantly strengthening by 2024. However, fluctuations in the quick ratio suggest varying levels of liquidity challenges, particularly with inventory considerations in certain years.

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Additional liquidity measure

The cash conversion cycle of SJW Group Common Stock has shown a gradual improvement over the years. As of December 31, 2020, the cash conversion cycle was 17.81 days, which decreased to 15.56 days by December 31, 2021. The trend continued with further improvement as the cycle reduced to 13.51 days by December 31, 2022. Notably, by December 31, 2023, the cash conversion cycle reached 0.00 days, indicating a significant efficiency in converting resources into cash. This trend continued into December 31, 2024, where the cycle remained at 0.00 days. Overall, the decreasing trend in the cash conversion cycle reflects an improvement in the company's ability to manage its working capital and efficiently convert inventory and receivables into cash.