Chord Energy Corp (CHRD)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	1,579,120	1,424,550	1,482,510	1,615,440	271,617
Total current liabilities	US$ in thousands	1,683,980	1,165,460	1,361,330	1,225,200	341,231
Current ratio		0.94	1.22	1.09	1.32	0.80

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,579,120K ÷ $1,683,980K
= 0.94

The current ratio of Chord Energy Corp has shown variability over the past five years. It stood at 0.80 on December 31, 2020, indicating that the company may have had difficulties meeting its short-term obligations with its current assets at that time. However, there has been an improvement in the company's liquidity position since then.

As of December 31, 2021, the current ratio increased to 1.32, surpassing the 1.0 benchmark, which implies that Chord Energy Corp had more current assets than current liabilities, suggesting a healthier liquidity position. Subsequently, the ratio decreased to 1.09 on December 31, 2022, but remained above 1.0, indicating the company's ability to cover its short-term obligations.

The current ratio further improved to 1.22 on December 31, 2023, signaling continued strength in liquidity. However, there was a decline in the current ratio to 0.94 on December 31, 2024, falling below the ideal 1.0 threshold. This decrease may raise concerns about the company's ability to meet its short-term obligations solely using current assets.

In summary, while Chord Energy Corp's current ratio has shown fluctuations over the years, it generally indicates an overall positive trend in liquidity management, with the company demonstrating an ability to meet its short-term financial obligations in most of the observed periods. It will be important to monitor future changes in the current ratio to assess the company's evolving liquidity position accurately.