Peabody Energy Corp (BTU)
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 | 2.06 | 2.30 | 2.17 | 2.17 | 2.58 | 1.79 | 2.28 | 2.21 | 1.93 | 1.60 | 1.58 | 1.61 | 1.80 | 0.65 | 1.98 | 1.76 | 1.65 | 1.74 | 1.81 | 1.77 |
| Quick ratio | 1.32 | 1.53 | 1.50 | 1.44 | 1.88 | 1.32 | 1.63 | 1.40 | 1.35 | 1.00 | 1.12 | 1.08 | 1.30 | 0.45 | 1.24 | 1.13 | 1.04 | 1.13 | 1.21 | 1.11 |
| Cash ratio | 0.99 | 1.18 | 1.19 | 1.03 | 1.42 | 1.03 | 1.13 | 1.01 | 1.02 | 0.71 | 0.85 | 0.91 | 1.07 | 0.39 | 1.06 | 0.85 | 0.75 | 0.84 | 0.86 | 0.76 |
Peabody Energy Corp's liquidity ratios have demonstrated some fluctuation over the past few quarters. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, generally remained above 2, indicating a healthy liquidity position. However, there was a slight decline in this ratio from the fourth quarter of 2022 to the first quarter of 2023.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also showed a similar trend of fluctuation. While the quick ratio remained above 1 in most quarters, indicating that the company has an adequate buffer of liquid assets to cover immediate liabilities, there were some quarters where it dipped slightly below this threshold.
The cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents, exhibited a similar pattern of fluctuation. Peabody Energy Corp's cash ratio generally stayed above 1, indicating that the company has sufficient cash to cover its short-term obligations. However, there were a few quarters where the cash ratio dropped below 1, suggesting a potential risk in meeting short-term cash needs.
Overall, Peabody Energy Corp's liquidity ratios suggest that the company has maintained a relatively strong liquidity position, with some minor fluctuations in certain quarters that may warrant further monitoring to ensure continued financial stability.
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 | 63.87 | 203.39 | 181.63 | 204.64 | 60.85 | 253.65 | 247.19 | 247.47 | 53.53 | 199.59 | 196.95 | 62.98 | 44.30 | 77.93 | 72.22 | 227.50 | 96.79 | 1,139.99 | 1,878.45 | 1,884.90 |
The cash conversion cycle (CCC) is a key metric that assesses the efficiency of a company's working capital management by measuring the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
Analyzing the trend in Peabody Energy Corp's CCC over the past few years reveals fluctuations in the efficiency of its working capital management. The company's CCC has shown significant variability, ranging from as low as 44.30 days to as high as 1,884.90 days.
Between December 2019 and June 2020, Peabody Energy Corp experienced a substantial increase in its CCC, indicating challenges in converting its investments into cash and potentially facing liquidity constraints. This trend continued into September 2020, with a high CCC of 1,139.99 days.
However, there was an improvement in the CCC from September 2020 to December 2020, signaling better management of working capital. The CCC dropped to 53.53 days by the end of December 2021, which suggests a more efficient conversion of resources into cash flows.
Subsequently, there was an increase in the CCC from December 2021 to March 2022, potentially indicating delays in collecting cash from sales or managing inventory. The trend continued until September 2022, peaking at 253.65 days, signaling a worsened working capital efficiency.
Peabody Energy Corp saw a decrease in its CCC towards the end of 2023, dropping to 63.87 days, which may suggest improvements in its working capital management practices. The company should continue monitoring and making adjustments to maintain a healthy CCC, ensuring optimal utilization of its resources and cash flow generation.