Chesapeake Energy Corp (CHK)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,079,000 | 130,000 | 905,000 | 279,000 | 6,000 |
| Short-term investments | US$ in thousands | 637,000 | 34,000 | 5,000 | 19,000 | 134,000 |
| Total current liabilities | US$ in thousands | 1,314,000 | 2,704,000 | 2,447,000 | 3,094,000 | 2,392,000 |
| Cash ratio | 1.31 | 0.06 | 0.37 | 0.10 | 0.06 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,079,000K
+ $637,000K)
÷ $1,314,000K
= 1.31
The cash ratio of Chesapeake Energy Corp has shown fluctuations over the past five years. As of December 31, 2023, the cash ratio stands at 1.31, indicating that the company has $1.31 in cash and cash equivalents for every dollar of current liabilities. This represents a significant improvement compared to the previous year, where the cash ratio was only 0.06.
In 2021, the cash ratio was 0.37, showing a moderate level of liquidity. The ratio increased to 0.10 in 2020, indicating a slight improvement in the company's ability to cover its short-term liabilities with cash on hand. However, in 2019, the cash ratio was also at 0.06, similar to the 2022 figure.
The substantial increase in the cash ratio in 2023 suggests that Chesapeake Energy Corp has strengthened its liquidity position and may be better positioned to meet its short-term obligations using its cash reserves. However, continued monitoring of the cash ratio is advisable to assess the company's ongoing liquidity management.
Peer comparison
Dec 31, 2023