SJW Corporation (SJW)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 9,723 | 12,344 | 10,908 | 5,269 | 12,944 |
| Short-term investments | US$ in thousands | — | — | 57,632 | 14,367 | — |
| Total current liabilities | US$ in thousands | 342,974 | 268,322 | 203,271 | 350,795 | 234,567 |
| Cash ratio | 0.03 | 0.05 | 0.34 | 0.06 | 0.06 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($9,723K
+ $—K)
÷ $342,974K
= 0.03
The cash ratio of SJW Group has fluctuated over the past five years, ranging from 0.09 to 0.19. The cash ratio measures the company's ability to cover its short-term liabilities solely with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on other current assets or external financing.
In 2023, the cash ratio decreased to 0.12 from 0.19 in 2022, signaling a lower proportion of cash and cash equivalents relative to current liabilities. This could imply a potential decrease in liquidity or an increase in short-term obligations during the year.
In 2021, the cash ratio remained relatively stable at 0.17, suggesting a consistent ability to cover short-term liabilities with available cash. The same ratio was also recorded in 2019, implying that SJW Group maintained a similar liquidity position over the two-year period.
The lowest cash ratio of 0.09 in 2020 indicates a weaker liquidity position compared to other years. This could raise concerns about the company's ability to meet short-term obligations solely with cash and may require alternative funding sources to cover immediate liabilities.
Overall, fluctuations in the cash ratio of SJW Group over the past five years reflect changes in the company's liquidity position and its ability to manage short-term financial obligations effectively. It is essential for investors and stakeholders to monitor these variations to assess the company's financial health and risk management strategies.
Peer comparison
Dec 31, 2023