Essential Utilities Inc (WTRG)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 9,156 | 4,612 | 11,398 | 10,567 | 4,827 |
| Short-term investments | US$ in thousands | — | — | — | — | 1,258,100 |
| Total current liabilities | US$ in thousands | 974,668 | 797,927 | 1,021,870 | 675,063 | 603,873 |
| Cash ratio | 0.01 | 0.01 | 0.01 | 0.02 | 2.09 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($9,156K
+ $—K)
÷ $974,668K
= 0.01
The cash ratio of Essential Utilities Inc has shown a significant decline over the years, dropping from 2.09 as of December 31, 2020, to only 0.01 as of December 31, 2022, 2023, and 2024. This indicates that the company holds a very minimal amount of cash and cash equivalents relative to its current liabilities. A low cash ratio may suggest that Essential Utilities Inc could potentially face challenges in meeting its short-term financial obligations solely from its available cash resources. It is essential for the company to monitor its cash position closely and explore strategies to improve its liquidity position to ensure financial stability and flexibility in the future.
Peer comparison
Dec 31, 2024