Consol Energy Inc (CEIX)

The liquidity ratios of Consol Energy Inc have shown a mixed trend over the past five years.

1. Current Ratio: Consol Energy Inc's current ratio has generally improved from 0.86 in 2019 to 1.35 in 2023. This indicates that the company's ability to meet its short-term obligations with its current assets has strengthened over the years. A current ratio above 1 suggests that the company has more current assets than current liabilities, which is generally considered a positive sign for liquidity.

2. Quick Ratio: The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, has also shown improvement from 0.72 in 2019 to 1.16 in 2023. This suggests that Consol Energy Inc has become more capable of meeting its short-term obligations without relying on inventory.

3. Cash Ratio: The cash ratio, which measures the ability of a company to cover its short-term liabilities with its cash and cash equivalents, has fluctuated over the years. However, there has been an overall upward trend from 0.28 in 2019 to 0.79 in 2023. This indicates an improved ability to settle immediate obligations solely with cash on hand.

Overall, Consol Energy Inc's liquidity ratios have shown positive trends, signaling a stronger liquidity position and enhanced ability to meet short-term obligations. However, further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of the company's liquidity position.

---

Additional liquidity measure

Consol Energy Inc's cash conversion cycle has shown variability over the past five years. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle is generally preferred as it indicates that the company is efficiently managing its working capital.

In 2023, the cash conversion cycle decreased to 23.35 days, reflecting an improvement compared to the previous year. This suggests that Consol Energy Inc was able to convert its investments into cash more quickly, potentially due to more efficient inventory management or faster collection of receivables.

In 2022 and 2021, the cash conversion cycle increased to 31.48 days and 33.50 days respectively, indicating a longer time taken to convert investments into cash compared to the previous year. This may suggest issues with managing working capital or slower collection of receivables during those periods.

In 2020, the cash conversion cycle significantly increased to 66.59 days, which could be a cause for concern as it indicates a prolonged time to convert investments into cash. This may have been influenced by delays in inventory turnover or difficulty in collecting receivables.

In 2019, the cash conversion cycle was at 45.82 days, showing an improvement from the previous year but still indicating a relatively longer period for converting investments into cash.

Overall, Consol Energy Inc's cash conversion cycle has fluctuated in recent years, highlighting the importance of efficient working capital management to ensure timely conversion of investments into cash inflows.