Essential Utilities Inc (WTRG)

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	4,612	8,505	11,642	20,149	11,398	23,366	12,976	58,298	10,567	9,736	8,404	18,046	4,827	8,494	7,227	31,848	1,868,920	2,030,570	1,974,080	4,053
Short-term investments	US$ in thousands	—	2,345,700	—	—	—	—	—	—	—	—	1,349,870	1,310,000	1,258,100	1,757	5,943	5,473	5,984	6,253	7,448	6,840
Total current liabilities	US$ in thousands	797,927	896,568	765,135	803,286	1,021,870	848,093	544,125	678,178	675,063	516,029	469,155	503,394	603,873	666,959	448,179	827,374	323,461	352,123	398,949	434,099
Cash ratio		0.01	2.63	0.02	0.03	0.01	0.03	0.02	0.09	0.02	0.02	2.90	2.64	2.09	0.02	0.03	0.05	5.80	5.78	4.97	0.03

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($4,612K + $—K) ÷ $797,927K
= 0.01

The cash ratio of Essential Utilities Inc has fluctuated over the past year, ranging from a low of 0.07 in Q3 2023 to a high of 0.17 in Q4 2023. The cash ratio measures the company's ability to cover its short-term liabilities with cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of funding.

Essential Utilities Inc's cash ratio has generally been below 1, suggesting that the company may not hold a significant amount of cash relative to its current liabilities. This could indicate a potential risk if the company faces unexpected cash flow challenges or needs to cover short-term debts quickly.

Overall, it is important for Essential Utilities Inc to carefully manage its cash position to ensure it maintains a healthy level of liquidity to meet its short-term obligations and support ongoing operations. It may be beneficial for the company to monitor and improve its cash management practices to strengthen its financial position and mitigate liquidity risks.