SJW Corporation (SJW)

Liquidity ratios

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
Current ratio 0.58 0.74 0.85 0.91 0.59 0.50 0.50 0.63 0.66 0.58 0.54 0.43 0.36 0.51 0.56 0.54 0.52 3.52 3.97 5.63
Quick ratio 0.38 0.51 0.59 0.59 0.46 0.48 0.50 0.60 0.84 0.54 0.53 0.39 0.33 0.48 0.49 0.43 0.39 3.42 3.79 5.33
Cash ratio 0.03 0.07 0.11 0.11 0.05 0.09 0.10 0.15 0.34 0.11 0.15 0.09 0.06 0.11 0.09 0.12 0.06 2.94 3.32 4.84

The liquidity ratios of SJW Group show fluctuations over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has varied between 0.58 and 0.91 during this period. Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has ranged from 0.46 to 0.91.

The cash ratio, which indicates the company's ability to pay off its current liabilities using only cash and cash equivalents, has also shown variability, with values spanning from 0.08 to 0.46. Overall, SJW Group's liquidity position appears to have experienced some volatility, possibly due to changes in the composition of its current assets and liabilities.

It is crucial for the company to closely monitor its liquidity ratios to ensure it maintains a healthy balance between its current assets and liabilities, especially during periods of economic uncertainty or unexpected financial challenges. Additional analysis and comparisons with industry benchmarks may provide further insights into the effectiveness of SJW Group's liquidity management strategies.

Additional liquidity measure

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 conversion cycle days 31.81 89.67 75.47 79.87 48.85 63.11 54.32 47.15 48.11 54.75 41.64 46.52 42.33 44.01 52.29 34.85 38.56 33.26 23.21 13.31

The cash conversion cycle for SJW Group fluctuated over the quarters from Q1 2022 to Q4 2023.

In Q1 2022, the company had a cash conversion cycle of 13.82 days, indicating that it took the company nearly two weeks to convert its resources into cash. This cycle decreased to 5.62 days in Q2 2023, suggesting an improvement in the company's efficiency in managing its cash and resources.

However, in Q3 2023, the cash conversion cycle increased significantly to 18.62 days, indicating potential challenges in converting resources into cash efficiently. This trend continued in Q4 2023, where the cash conversion cycle dropped to -1.78 days, which is an unusual figure and implies a unique scenario where the company was able to convert resources into cash before paying for those resources.

Overall, the fluctuation in SJW Group's cash conversion cycle over the quarters suggests varying efficiency levels in managing its cash and resources. Monitoring and analyzing these trends can help the company improve its working capital management and overall financial performance.