Chord Energy Corp (CHRD)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2019	Dec 31, 2018
Cash and cash equivalents	US$ in thousands	317,998	593,151	172,114	20,019	22,190
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	1,165,460	1,361,330	1,225,200	602,883	611,776
Cash ratio		0.27	0.44	0.14	0.03	0.04

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($317,998K + $—K) ÷ $1,165,460K
= 0.27

The cash ratio of Chord Energy Corp has shown variability over the past three years. In 2021, the ratio was 0.15, indicating that the company had 15 cents in cash and cash equivalents for every dollar of current liabilities. This suggests a relatively lower ability to cover short-term obligations with its available cash.

However, in 2022, Chord Energy Corp improved its cash ratio to 0.47, reflecting a stronger liquidity position compared to the previous year. This indicates that the company had 47 cents in cash and cash equivalents for each dollar of current liabilities, showing enhanced short-term solvency.

In 2023, the cash ratio decreased to 0.35, indicating a slight decline in liquidity compared to the previous year. Despite the decrease, the company still had 35 cents in cash and cash equivalents for every dollar of current liabilities, suggesting a reasonable ability to meet short-term obligations.

Overall, the trend in Chord Energy Corp's cash ratio shows improvements in liquidity from 2021 to 2022, followed by a slight decline in 2023. Monitoring the cash ratio over time can provide insights into the company's liquidity management and its ability to meet short-term obligations with available cash resources.