Antero Resources Corp (AR)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.35 | 0.28 | 0.29 | 0.29 | 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 |
| Quick ratio | 0.02 | 0.02 | 0.02 | -2.09 | 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 |
| Cash ratio | 0.00 | -0.00 | 0.00 | -2.12 | 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 |
The current ratio of Antero Resources Corp has shown fluctuations over the quarters, starting at 1.15 on March 31, 2020, but declining to 0.35 as of December 31, 2024. This trend indicates a potential weakening in the company's ability to meet its short-term obligations with its current assets.
On the other hand, the quick ratio, also known as the acid-test ratio, provides a more conservative measure of liquidity excluding inventory from current assets. Antero Resources Corp's quick ratio has been volatile, with some quarters showing negative values and others around or slightly above 0. This suggests that the company may struggle to meet its immediate payment obligations without relying on inventory.
Furthermore, the cash ratio, which focuses solely on cash and cash equivalents compared to current liabilities, also fluctuates significantly, with several quarters showing negative values. This implies that Antero Resources Corp may have limited cash on hand to cover its short-term liabilities.
Overall, based on the liquidity ratios analyzed, Antero Resources Corp appears to have faced challenges in maintaining strong liquidity levels, as indicated by the declining current ratio, volatile quick ratio, and fluctuating cash ratio over the quarters.
Additional liquidity measure
| 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 conversion cycle | days | 2.90 | 5.81 | 1.94 | 4,038.41 | 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 |
The cash conversion cycle of Antero Resources Corp has displayed significant variability over the past few years. The cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
From the data provided, the cash conversion cycle fluctuated widely, ranging from 1.94 days to over 5,000 days. Initially, the cycle was fairly stable, hovering around a few hundred days, indicating a longer time to convert investments into cash. However, there was a sudden decrease in the cycle to negative days, suggesting the company was able to generate cash from its operations before paying suppliers.
Subsequently, the cash conversion cycle experienced extreme spikes, particularly in 2021 and early 2022, reaching well beyond 3,000 days. This prolonged cycle may indicate challenges in managing working capital effectively, potentially due to inventory management issues, payment delays, or collection inefficiencies.
Towards the end of 2023 and into 2024, there was a notable improvement in the cash conversion cycle, with a significant reduction to single-digit days. This turnaround suggests the company may have implemented better practices to streamline its operations, boost cash flows, and enhance overall efficiency in converting investments into cash.
Overall, the analysis of Antero Resources Corp's cash conversion cycle highlights the importance of monitoring working capital management and efficiency in operations to ensure optimal cash flow generation and financial performance.