Antero Resources Corp (AR)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | — | — | -3,446,490 | -3,420,460 | -2,614,810 |
| Short-term investments | US$ in thousands | — | -5,570 | — | — | 0 |
| Receivables | US$ in thousands | 34,413 | 42,619 | 35,488 | 78,998 | 28,457 |
| Total current liabilities | US$ in thousands | 1,445,930 | 1,452,090 | 1,774,910 | 2,068,120 | 983,054 |
| Quick ratio | 0.02 | 0.03 | -1.92 | -1.62 | -2.63 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($—K
+ $—K
+ $34,413K)
÷ $1,445,930K
= 0.02
The quick ratio, also known as the acid-test ratio, is a liquidity ratio that measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that a company may have difficulty meeting its short-term liabilities.
Based on the data provided for Antero Resources Corp:
- As of December 31, 2020, the quick ratio was -2.63, indicating that the company's current assets were significantly lower than its current liabilities, potentially raising concerns about its short-term liquidity.
- By December 31, 2021, the quick ratio improved to -1.62, although it still remained below 1, suggesting ongoing liquidity challenges.
- As of December 31, 2022, the quick ratio further improved to -1.92, showing some progress but still indicating a potential liquidity issue.
- The quick ratio saw a significant positive shift by December 31, 2023, reaching 0.03, which suggests that the company's ability to cover its short-term obligations with its liquid assets improved significantly.
- This positive trend continued into December 31, 2024, with the quick ratio slightly increasing to 0.02. While still a very low ratio, it indicates a continued improvement in the company's ability to cover its short-term liabilities.
Overall, Antero Resources Corp showed significant improvements in its quick ratio over the years, transitioning from severe liquidity challenges to a better position where it can now cover its short-term obligations with a limited margin of safety. It is important for the company to continue monitoring and managing its liquidity effectively to ensure financial stability and meet its obligations in the future.
Peer comparison
Dec 31, 2024