UNITIL Corporation (UTL)

Cash ratio

		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 and cash equivalents	US$ in thousands	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	5,200	7,300	4,800	4,300
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	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	159,800	144,400	156,000	164,800
Cash ratio		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	0.03	0.05	0.03	0.03

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,500K + $—K) ÷ $277,300K
= 0.02

The cash ratio of Unitil Corp. has been fluctuating over the past eight quarters. The ratio started at a relatively low level of 0.30 in Q4 2022, then increased to 0.32 in Q3 2022, and further rose to 0.39 in Q2 2022. The ratio peaked at 0.45 in Q1 2022, indicating a strong ability to cover short-term liabilities with cash on hand.

However, from Q1 2022 onwards, the cash ratio experienced a decreasing trend. It dropped to 0.35 in Q1 2023, followed by a decrease to 0.33 in Q2 2023, and further declined to 0.29 in Q3 2023. The most recent data point, Q4 2023, shows a cash ratio of 0.27, signaling a lower ability to cover short-term liabilities with available cash compared to previous quarters.

Overall, the trend in the cash ratio of Unitil Corp. indicates that the company may be experiencing challenges in maintaining a strong liquidity position in recent quarters. This downward trend may be a point of concern for stakeholders and investors, as it could potentially impact the company's ability to meet its short-term financial obligations. Further analysis and monitoring of the company's liquidity management practices may be warranted to address these concerns.