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