UNITIL Corporation (UTL)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 6,300 | 6,500 | 9,000 | 6,500 | 6,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 228,700 | 277,300 | 260,100 | 173,500 | 136,100 |
| Cash ratio | 0.03 | 0.02 | 0.03 | 0.04 | 0.04 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,300K
+ $—K)
÷ $228,700K
= 0.03
The cash ratio of UNITIL Corporation has been relatively stable over the years, ranging between 0.02 to 0.04. This ratio measures the company's ability to cover its short-term liabilities using its cash and cash equivalents.
A cash ratio of 0.02 to 0.04 implies that UNITIL Corporation may have a lower level of liquidity compared to some industry benchmarks, indicating a potential risk in meeting its short-term obligations solely through its available cash resources.
It is important for the company to monitor and manage its liquidity position effectively to ensure it can meet its financial obligations as they come due. Further analysis of other liquidity ratios and cash flow metrics may provide a more comprehensive view of UNITIL Corporation's overall liquidity and financial health.
Peer comparison
Dec 31, 2024