Chesapeake Energy Corp (CHK)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,609,000 | 2,698,000 | 2,103,000 | 1,108,000 | 1,251,000 |
| Total current liabilities | US$ in thousands | 1,314,000 | 2,704,000 | 2,447,000 | 3,094,000 | 2,392,000 |
| Current ratio | 1.99 | 1.00 | 0.86 | 0.36 | 0.52 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,609,000K ÷ $1,314,000K
= 1.99
The current ratio of Chesapeake Energy Corp has shown a fluctuating trend over the past five years. As of December 31, 2023, the company's current ratio stands at a healthy 1.99, indicating that the company has almost twice as many current assets as current liabilities available to cover its short-term obligations.
This current ratio improvement from previous years is significant, especially when compared to the low ratios of 0.36 in 2020 and 0.52 in 2019, which suggest potential liquidity concerns.
The current ratio of 1.99 in 2023 reflects a strong liquidity position for Chesapeake Energy Corp. It suggests that the company has ample short-term assets to meet its short-term liabilities, providing a cushion for financial obligations and potential unexpected expenses.
Overall, the upward trend in current ratio indicates an improved liquidity position for Chesapeake Energy Corp, which can be seen as a positive indicator of the company's financial health and ability to meet its short-term obligations.
Peer comparison
Dec 31, 2023