Essential Utilities Inc (WTRG)
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 | 9,156 | 8,436 | 18,819 | 35,200 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | 2,345,700 | — | — | — | — | — | — | — | — | 1,349,870 | 1,310,000 | 1,258,100 | 1,757 | 5,943 | 5,473 |
| Total current liabilities | US$ in thousands | 974,668 | 683,143 | 629,150 | 678,606 | 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 |
| Cash ratio | 0.01 | 0.01 | 0.03 | 0.05 | 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 |
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 fluctuated over the period from March 31, 2020, to December 31, 2024. The cash ratio measures the company's ability to cover its current liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.
At the beginning of the period, the cash ratio was relatively low, ranging from 0.02 to 0.05, implying that Essential Utilities Inc had limited cash reserves compared to its current liabilities. However, there was a significant improvement in the cash ratio by the end of December 31, 2020, where it spiked to 2.09. This sharp increase suggested that the company had substantially increased its cash and cash equivalents compared to its short-term obligations.
The trend of improvement continued into the following quarters, with the cash ratio consistently staying above 2. This indicated that Essential Utilities Inc had a healthy cash position to cover its current debts over this period.
However, in subsequent quarters, the cash ratio dropped back to lower levels, ranging between 0.01 to 0.09. This decline may be attributed to changes in the company's cash position or an increase in current liabilities during these periods.
Overall, while Essential Utilities Inc experienced fluctuations in its cash ratio, the company managed to maintain a strong cash position in relation to its short-term obligations during most of the period under analysis. Investors and analysts may continue to monitor the cash ratio to assess the company's liquidity and financial health in the future.
Peer comparison
Dec 31, 2024