Essential Utilities Inc (WTRG)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 9,156 | 4,612 | 11,398 | 10,567 | 4,827 |
| Short-term investments | US$ in thousands | — | — | — | — | 1,258,100 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 974,668 | 797,927 | 1,021,870 | 675,063 | 603,873 |
| Quick ratio | 0.01 | 0.01 | 0.01 | 0.02 | 2.09 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($9,156K
+ $—K
+ $—K)
÷ $974,668K
= 0.01
The quick ratio of Essential Utilities Inc reflects the company's ability to cover its short-term obligations with its most liquid assets. As of December 31, 2020, the quick ratio was 2.09, indicating a healthy liquidity position with more than enough liquid assets to cover immediate liabilities. However, there has been a significant decline in the quick ratio over the following years, reaching 0.01 by December 31, 2024.
This sharp decrease may raise concerns about Essential Utilities Inc's liquidity and its ability to meet short-term obligations using its current liquid assets. A quick ratio of 0.01 suggests that the company may struggle to cover its short-term liabilities with its available liquid assets. It is important for stakeholders to monitor the company's liquidity position closely and assess the effectiveness of its short-term asset management in light of these declining ratios.
Peer comparison
Dec 31, 2024