Essential Utilities Inc (WTRG)

Current 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
Total current assets	US$ in thousands	485,911	373,933	362,733	419,534	491,979	409,348	406,710	509,772	658,159	541,306	413,295	443,515	437,795	352,504	304,732	348,109	380,220	311,238	312,454	368,008
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
Current ratio		0.50	0.55	0.58	0.62	0.62	0.46	0.53	0.63	0.64	0.64	0.76	0.65	0.65	0.68	0.65	0.69	0.63	0.47	0.70	0.44

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $485,911K ÷ $974,668K
= 0.50

Essential Utilities Inc's current ratio has exhibited fluctuating trends over the reported periods. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, ranged from a low of 0.44 on March 31, 2020, to a high of 0.76 on June 30, 2022.

The ratio improved from 0.44 on March 31, 2020, to reach its peak of 0.76 on June 30, 2022, indicating a stronger liquidity position in mid-2022. However, the current ratio decreased thereafter to 0.50 by December 31, 2024.

The current ratio values below 1.0 throughout the period suggest that Essential Utilities Inc may have struggled to meet its short-term obligations using its current assets alone. This could imply potential liquidity challenges, although it's important to consider industry norms and the company's specific circumstances when evaluating the adequacy of its current ratio.

Overall, the fluctuating nature of Essential Utilities Inc's current ratio highlights the importance of careful monitoring of liquidity levels to ensure the company can meet its short-term obligations in a timely manner.