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American Water Works CoAWK -0.07%78 Cash Ratio is 0.03 as of Mar. 2026, which is 25% below its 10-year median of 0.04. GuruFocus rates AWK with a GF Score™ of 78/100 and a GF Value™ of $155.79 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 484 Utilities - Regulated companies, American Water Works Co ranks worse than 93.39% on this metric.
American Water Works Co has a Cash Ratio of 0.03. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for American Water Works Co's Cash Ratio or its related term are showing as below:
AWK'
s Cash Ratio Range Over the Past 10 Years
Min: 0.02 Med: 0.04 Max: 0.45
Current: 0.03
During the past 13 years, American Water Works Co's highest Cash Ratio was 0.45. The lowest was 0.02. And the median was 0.04.
AWK's Cash Ratio is ranked worse than 93.39% of 484
companies
in the Utilities - Regulated industry
Industry Median: 0.35
vs AWK: 0.03
American Water Works Co (NYSE:AWK) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
American Water Works Co Cash Ratio Related Terms
American Water Works Co Cash Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Utilities - Regulated Water subindustry, American Water Works Co's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
American Water Works Co Cash Ratio vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, American Water Works Co's Cash Ratio distribution charts can be found below:
* The bar in red indicates where American Water Works Co's Cash Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
American Water Works Co (AWK) has a Cash Ratio of 0.03 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on American Water Works Co and its competitors. This is 25% below median its historical median of 0.04. Over the past decade, American Water Works Co's Cash Ratio has ranged from 0.02 to 0.45. According to the industry distribution chart, American Water Works Co ranks #452 out of 484 companies in the Utilities - Regulated industry, placing it in the top 93.4%.
Is American Water Works Co's Cash Ratio too high?
American Water Works Co's current Cash Ratio of 0.03 is 25% below median its 10-year median of 0.04. Over the past 10 years, this metric has ranged from a low of 0.02 to a high of 0.45. The Utilities - Regulated industry median Cash Ratio is 0.35. American Water Works Co's value of 0.03 is 91.4% below this industry median. Based on the distribution chart, American Water Works Co ranks #452 out of 484 companies in the Utilities - Regulated industry, which is in the bottom quartile relative to peers. Overall, American Water Works Co has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does American Water Works Co's Cash Ratio compare to WTRG and AWR?
According to the Utilities - Regulated industry distribution chart, American Water Works Co ranks #452 out of 484 companies for Cash Ratio. This places American Water Works Co in the lower half of its industry. The industry median Cash Ratio is 0.35. American Water Works Co's value of 0.03 is 91.4% below this benchmark. Historically, American Water Works Co's own Cash Ratio has ranged from 0.02 to 0.45 over the past decade. While the company's 10-year median is 0.04 vs. the industry median of 0.35, American Water Works Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for an Utilities - Regulated company?
The median Cash Ratio among Utilities - Regulated companies is 0.35, based on 484 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Water Works Co's current Cash Ratio of 0.03 is 91.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on American Water Works Co and its competitors. For the Utilities - Regulated industry, the median Cash Ratio is 0.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Water Works Co's current Cash Ratio is 0.03, which is 25% below median its own 10-year median of 0.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Water Works Co stock overvalued right now?
Based on GuruFocus' analysis, American Water Works Co (AWK) is currently considered Modestly Undervalued. The stock's GF Value™ is $155.79, compared to a current price of $134.56 — trading 13.6% below its estimated fair value. The current Cash Ratio is 0.03, which is 25% below median its 10-year median of 0.04 and 91.4% below the Utilities - Regulated industry median of 0.35. American Water Works Co's overall GF Score™ is 78/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For American Water Works Co (AWK), the current Cash Ratio is 0.03 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is American Water Works Co (AWK) Overvalued in 2026?
Based on GuruFocus' analysis, American Water Works Co stock appears to be undervalued.
The current stock price of $134.56 is trading 13.6% below its estimated GF Value™ of $155.79.
GuruFocus considers American Water Works Co to be Modestly Undervalued.
Key valuation signals for AWK:
Cash Ratio: 0.03 (25% below median its 10-year median of 0.04)
GF Value™: $155.79 vs. price of $134.56 (13.6% below fair value)
Industry Position: 91.4% below the Utilities - Regulated median (#452 of 484)
No single metric tells the full story. See the AWK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
American Water Works is the largest investor-owned US water and wastewater utility, serving nearly 4 million customers in 14 states. It provides water and wastewater services to residential, commercial, and industrial customers and operates predominantly in regulated markets. The company's nonregulated business is water services for military bases, which operates under long-term contracts with regulated-like returns. The proposed Essential Utilities acquisition would add regulated water and wastewater utilities in Ohio, North Carolina, and Texas while increasing its presence in Illinois, Indiana, Pennsylvania, New Jersey, and Virginia.
78GF Score
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