Essential Utilities Inc (WTRG)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 264,380 | 491,979 | 658,159 | 437,795 | 380,220 |
| Total current liabilities | US$ in thousands | 974,668 | 797,927 | 1,021,870 | 675,063 | 603,873 |
| Current ratio | 0.27 | 0.62 | 0.64 | 0.65 | 0.63 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $264,380K ÷ $974,668K
= 0.27
The current ratio of Essential Utilities Inc has shown a downward trend over the past five years, starting at 0.63 in December 2020 and decreasing to 0.27 by December 2024. A current ratio below 1 indicates that the company may have difficulties meeting its short-term obligations using its current assets alone. The decreasing trend could be a cause for concern as it suggests the company's current liabilities are increasing relative to its current assets, potentially impacting its liquidity and ability to cover short-term debts. Further investigation into the company's management of working capital and liquidity position may be warranted to address the declining current ratio.
Peer comparison
Dec 31, 2024