Chesapeake Energy Corp (CHK)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 593,000 | 1,438,000 | 1,115,000 | 746,000 | 990,000 |
| Total current liabilities | US$ in thousands | 1,314,000 | 2,704,000 | 2,447,000 | 3,094,000 | 2,392,000 |
| Quick ratio | 1.76 | 0.59 | 0.83 | 0.34 | 0.47 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,079,000K
+ $637,000K
+ $593,000K)
÷ $1,314,000K
= 1.76
The quick ratio of Chesapeake Energy Corp has shown significant fluctuations over the past five years. In 2023, the quick ratio improved to 1.76, indicating a strong ability to cover its short-term liabilities with its most liquid assets. This represents a positive trend compared to the previous year when the quick ratio was 0.59, signaling a potential liquidity issue.
In 2021, the quick ratio was 0.83, suggesting an improvement in liquidity compared to 2020 when it was 0.34. However, the quick ratio was higher in 2020 at 0.47 compared to 2019.
Overall, the quick ratio of Chesapeake Energy Corp has shown inconsistency over the past five years, with notable improvements in liquidity in 2023 and 2021, but with fluctuations in between. It is essential for the company to continue to monitor and manage its liquidity position to maintain financial stability and meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023