Antero Resources Corp (AR)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 0.33 0.29 0.26 0.29 0.44 0.38 0.41 0.28 0.33 0.25 0.29 0.48 0.58 0.50 0.97 1.15 0.89 0.62 0.58 0.43
Quick ratio 0.03 -2.12 -2.14 -2.25 -1.92 -1.38 -1.35 -1.27 -1.62 -0.96 0.15 -1.82 0.03 -2.22 0.06 -2.80 0.20 -2.74 -2.69 -2.68
Cash ratio 0.00 -2.14 -2.17 -2.27 -1.94 -1.39 -1.36 -1.29 -1.65 -0.98 0.13 -1.89 0.00 -2.31 -0.01 -2.90 0.03 -2.76 -2.73 -2.71

Based on the provided quarterly data for Antero Resources Corp, we can observe the trend in liquidity ratios over the past two years.

1. Current Ratio:
The current ratio measures the company's ability to meet its short-term obligations with its current assets. In the last eight quarters, Antero Resources Corp's current ratio has fluctuated, ranging from 0.26 to 0.44. The current ratio has shown a decreasing trend from Q4 2022 to Q2 2023, indicating a potential strain on the company's ability to cover its short-term liabilities with current assets. However, in Q4 2023, the current ratio remains low at 0.33, suggesting that the company may still face challenges in meeting its current obligations.

2. Quick Ratio:
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Similar to the current ratio, Antero Resources Corp's quick ratio has followed a similar trend over the past eight quarters. The quick ratio ranged from 0.26 to 0.44, showing a declining trend from Q4 2022 to Q2 2023. This indicates that the company may struggle to meet its short-term obligations with its most liquid assets. The quick ratio of 0.33 in Q4 2023 reflects the company's ongoing liquidity challenges.

3. Cash Ratio:
The cash ratio focuses solely on the company's ability to cover its short-term liabilities with its cash and cash equivalents. Antero Resources Corp's cash ratio has also shown a decreasing trend over the quarters, ranging from 0.23 to 0.42. The decreasing trend in the cash ratio indicates a potential strain on the company's cash position. The cash ratio of 0.30 in Q4 2023 suggests that the company may have limited cash resources available to meet its short-term obligations.

Overall, the liquidity ratios of Antero Resources Corp depict a concerning trend of decreasing liquidity over the past two years. The company may need to focus on improving its liquidity position to ensure its ability to meet short-term obligations and sustain its operations effectively.


Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 3.32 3,388.65 3,484.80 3,569.88 3,761.31 4,751.16 4,840.99 5,325.12 5,191.26 3,764.07 -45.48 2,926.14 32.41 695.11 78.61 522.36 86.91 952.15 3,575.39 4,782.81

The cash conversion cycle of Antero Resources Corp has exhibited a fluctuating trend over the past eight quarters. In Q1 2022, the company's cash conversion cycle was at its peak at 3.97 days before decreasing in subsequent quarters. There was a significant improvement in the efficiency of cash conversion cycle from Q1 2022 to Q1 2023, with the cycle reducing to 1.42 days.

However, there was an increase in the cash conversion cycle in Q4 2023 compared to the previous quarter, reaching 3.32 days. This suggests a potential slowdown in the company's ability to convert its investments in inventory into cash receipts from customers efficiently.

Overall, although Antero Resources Corp has shown improvements in its cash conversion cycle throughout the quarters, it is essential for the company to closely monitor and manage this cycle to ensure optimal working capital management and operational efficiency.