Essential Utilities Inc (WTRG)

Current ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total current assets	US$ in thousands	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	2,015,130	2,178,890	2,117,920	143,775
Total current liabilities	US$ in thousands	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	323,461	352,123	398,949	434,099
Current ratio		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	6.23	6.19	5.31	0.33

December 31, 2023 calculation

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

Essential Utilities Inc's current ratio has exhibited some fluctuations over the past eight quarters. The current ratio is intended to measure the company's ability to meet its short-term obligations with its current assets. A ratio above 1 indicates that the company has more current assets than current liabilities.

In Q4 2023, the current ratio stood at 0.62, indicating that the company may face challenges in meeting its short-term obligations with its current assets. This ratio decreased from the previous quarter's 0.46, suggesting a deteriorating liquidity position.

Looking back over the past year, Essential Utilities Inc has generally maintained a current ratio above 0.6, implying that the company has typically had enough current assets to cover its short-term liabilities. However, the current ratio dipped to 0.46 in Q3 2023, which could raise concerns about the company's ability to meet its short-term obligations during that period.

Overall, while Essential Utilities Inc has shown some fluctuations in its current ratio, it is essential to monitor this metric closely to ensure the company's ability to manage its short-term financial needs effectively.