SJW Group Common Stock (SJW)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 0.73 0.77 0.49 0.55 0.58 0.74 0.85 0.91 0.58 0.50 0.50 0.63 0.66 0.58 0.54 0.43 0.36 0.51 0.56 0.54
Quick ratio 0.04 0.02 0.07 0.01 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
Cash ratio 0.04 0.02 0.07 0.01 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

The analysis of SJW Group Common Stock liquidity ratios reveals the following trends:

1. Current Ratio:
- The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has shown fluctuation over the years.
- The ratio increased from 0.54 in March 2020 to a high of 0.91 in March 2023, indicating an improvement in the company's liquidity position during this period.
- However, there was a decline in the current ratio to 0.49 in June 2024, suggesting a potential strain on the company's ability to meet its short-term obligations.
- By the end of December 2024, the current ratio improved slightly to 0.73, but it remains lower than the peak in March 2023.

2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, focuses on the company's ability to pay off its current liabilities without relying on inventory.
- Similar to the current ratio, the quick ratio exhibited fluctuations during the period under review.
- The ratio increased significantly from 0.12 in March 2020 to 0.34 in December 2021, indicating an improvement in the company's ability to meet short-term obligations using its most liquid assets.
- However, the quick ratio declined to 0.03 by December 2023, suggesting a potential liquidity challenge.
- The ratio improved slightly to 0.04 by December 2024, but it remains relatively low compared to previous periods.

3. Cash Ratio:
- The cash ratio measures the company's ability to cover its short-term liabilities using only its cash and cash equivalents.
- Similar to the current and quick ratios, the cash ratio showed fluctuations over the years.
- The ratio increased from 0.12 in March 2020 to 0.34 in December 2021, indicating an improvement in the company's cash position.
- However, there was a significant decline in the cash ratio to 0.03 by December 2023, reflecting a potential strain on the company's ability to meet short-term obligations with cash alone.
- The ratio improved slightly to 0.04 by December 2024, but it remains relatively low compared to previous periods.

In conclusion, SJW Group Common Stock's liquidity ratios have shown varying trends over the years, with periods of improvement followed by declines. It is essential for investors to closely monitor these ratios to assess the company's ability to meet its short-term obligations and manage liquidity effectively.


Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 0.00 14.96 0.00 0.00 0.00 74.51 68.83 72.33 13.51 18.24 12.35 16.78 15.56 21.72 16.12 20.22 17.81 0.00 0.00 0.00

The cash conversion cycle for SJW Group Common Stock has been fluctuating over the analyzed periods. It started at 0 days in March 2020, June 2020, and September 2020, indicating that the company was able to quickly convert its investments in inventory and other resources into cash.

However, the cycle increased to 17.81 days in December 2020, indicating a delay in converting resources into cash. This trend continued into the following periods, with variations such as 20.22 days in March 2021, 16.12 days in June 2021, and 21.72 days in September 2021.

The cycle then improved to 15.56 days in December 2021, 16.78 days in March 2022, and 12.35 days in June 2022, suggesting an enhanced ability to manage working capital and convert it into cash more effectively.

However, there was a significant increase in the cash conversion cycle to 72.33 days in March 2023, followed by 68.83 days in June 2023 and 74.51 days in September 2023, indicating potential challenges in efficiently managing cash flow during those periods.

The cycle then decreased to 0 days in December 2023, March 2024, and June 2024, implying a swift recovery or improvement in cash conversion efficiency. Subsequently, the cycle increased to 14.96 days in September 2024.

Overall, fluctuations in the cash conversion cycle for SJW Group Common Stock suggest varying efficiencies in managing working capital and converting it into cash throughout the analyzed periods.