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