Essential Utilities Inc (WTRG)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 9,156 | 8,436 | 18,819 | 35,200 | 4,612 | 8,505 | 11,642 | 20,149 | 11,398 | 23,366 | 12,976 | 58,298 | 10,567 | 9,736 | 8,404 | 18,046 | 4,827 | 8,494 | 7,227 | 31,848 |
| Short-term investments | US$ in thousands | — | — | — | — | — | 2,345,700 | — | — | — | — | — | — | — | — | 1,349,870 | 1,310,000 | 1,258,100 | 1,757 | 5,943 | 5,473 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 0.01 | 0.01 | 0.03 | 0.05 | 0.01 | 2.63 | 0.02 | 0.03 | 0.01 | 0.03 | 0.02 | 0.09 | 0.02 | 0.02 | 2.90 | 2.64 | 2.09 | 0.02 | 0.03 | 0.05 |
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 measures a company's ability to meet its short-term obligations with its most liquid assets.
Essential Utilities Inc's quick ratio has shown fluctuations over the periods analyzed. In the earlier periods from March 31, 2020, to June 30, 2021, the quick ratio was consistently low, ranging from 0.03 to 0.05. This indicates a potential liquidity concern as the company may have had difficulty meeting its short-term obligations with its quick assets.
However, from December 31, 2021, to March 31, 2023, the quick ratio improved significantly, reaching levels between 2.09 and 2.90. This suggests the company had a substantial amount of highly liquid assets relative to its current liabilities during this period, reflecting strong short-term liquidity and the ability to easily cover its obligations.
Subsequently, the quick ratio dropped back to lower levels from June 30, 2023, to December 31, 2024, fluctuating between 0.01 and 0.05. This decrease may indicate a decline in the company's ability to meet its short-term obligations with its quick assets during these periods.
Overall, Essential Utilities Inc's quick ratio has exhibited variability, indicating fluctuations in the company's short-term liquidity position over the periods analyzed. It is important for stakeholders to carefully monitor this ratio to assess the company's ability to meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024