Essential Utilities Inc (WTRG)

Quick ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash US$ in thousands 4,612 11,398 10,567 4,827 1,868,920
Short-term investments US$ in thousands 1,258,100 5,984
Receivables US$ in thousands 245,736 376,828 260,921 273,313 107,620
Total current liabilities US$ in thousands 797,927 1,021,870 675,063 603,873 323,461
Quick ratio 0.31 0.38 0.40 2.54 6.13

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,612K + $—K + $245,736K) ÷ $797,927K
= 0.31

The quick ratio of Essential Utilities Inc has seen fluctuations over the past five years. It decreased from 6.25 in 2019 to 0.53 in 2020, indicating a significant drop in short-term liquidity. However, the ratio improved slightly to 0.49 in 2021 before declining again to 0.44 in 2022. In the most recent year, 2023, the quick ratio further decreased to 0.48.

This trend suggests that Essential Utilities Inc may be facing challenges in maintaining sufficient liquid assets to cover its short-term obligations. A quick ratio below 1.0 indicates potential difficulty in meeting current liabilities using only quick assets, such as cash and receivables, without relying on inventory. It is crucial for the company to closely monitor its liquidity position and take necessary steps to improve its short-term financial health.


Peer comparison

Dec 31, 2023