UNITIL Corporation (UTL)

Cash ratio

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 and cash equivalents US$ in thousands 6,300 6,300 2,800 6,300 6,500 6,000 6,800 6,800 9,000 7,900 5,100 6,500 6,500 8,800 5,000 6,100 6,000 8,200 4,200 6,200
Short-term investments US$ in thousands — — — — — — — — — — — — — — — — — — — —
Total current liabilities US$ in thousands 228,700 179,200 274,300 276,600 277,300 243,400 238,000 253,500 260,100 193,600 155,000 157,700 173,500 126,600 133,300 122,900 136,100 98,200 149,300 147,100
Cash ratio 0.03 0.04 0.01 0.02 0.02 0.02 0.03 0.03 0.03 0.04 0.03 0.04 0.04 0.07 0.04 0.05 0.04 0.08 0.03 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 provides insights into the company's ability to cover its short-term obligations with its cash and cash equivalents. Over the reviewed periods, the cash ratio fluctuated between 0.01 and 0.08. A higher cash ratio indicates that the company has a greater ability to cover its short-term liabilities with its cash on hand.

The cash ratio for UNITIL Corporation ranged around 0.03 to 0.05 for most of the periods, with occasional fluctuations to 0.08 and as low as 0.01. This suggests that the company generally maintains a moderate level of liquidity to meet its short-term financial obligations. However, it is important to note that the cash ratio decreased towards 0.01 for some periods, which might indicate potential liquidity challenges.

Overall, while the company's cash ratio demonstrates a reasonable level of liquidity, a downward trend in the ratio should be monitored closely to assess the company's ability to meet its short-term obligations efficiently.