Essential Utilities Inc (WTRG)

Current ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total current assets US$ in thousands 491,979 658,159 437,795 380,220 2,015,130
Total current liabilities US$ in thousands 797,927 1,021,870 675,063 603,873 323,461
Current ratio 0.62 0.64 0.65 0.63 6.23

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $491,979K ÷ $797,927K
= 0.62

The current ratio of Essential Utilities Inc has exhibited a decreasing trend over the past five years, declining from 6.31 in 2019 to 0.62 in 2023. This indicates a significant deterioration in the company's ability to meet its short-term obligations with its current assets. A current ratio below 1 suggests that the company may have difficulty in covering its current liabilities with its current assets, potentially signaling liquidity concerns. It is crucial for the company to closely monitor and address this declining trend to ensure it maintains a healthy liquidity position for operational stability and growth.


Peer comparison

Dec 31, 2023