Chord Energy Corp (CHRD)

Liquidity ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018
Current ratio 1.22 1.02 0.96 1.18 1.09 0.98 0.89 1.06 1.32 1.13 1.06 0.83 0.59 1.16 1.31 0.73 0.83 0.84 0.78 0.91
Quick ratio 1.08 0.93 0.84 1.09 1.01 0.92 0.85 1.02 0.45 1.08 1.00 0.75 0.50 0.77 0.71 0.65 0.68 0.75 0.71 0.67
Cash ratio 0.27 0.19 0.18 0.47 0.44 0.44 0.46 0.46 0.14 0.67 0.56 0.22 0.15 0.21 0.27 0.03 0.03 0.04 0.02 0.04

Chord Energy Corp's liquidity ratios provide insights into the company's ability to meet its short-term obligations. The current ratio, which measures the company's ability to cover its current liabilities with its current assets, has shown fluctuations over the past eight quarters, ranging from 0.96 to 1.22. While the current ratio has generally been above 1, indicating that the company has more current assets than current liabilities, there seems to be some variability in its short-term liquidity position.

The quick ratio, also known as the acid-test ratio, provides a more conservative measure of liquidity by excluding inventory from current assets. Chord Energy Corp's quick ratio has also displayed variability over the quarters, ranging from 0.86 to 1.16. This ratio suggests that the company may have faced challenges in quickly covering its current liabilities with its most liquid assets, excluding inventory.

The cash ratio, which indicates the proportion of a company's current liabilities that could be paid off with its cash and cash equivalents, has shown a similar fluctuating pattern, ranging from 0.22 to 0.51. This ratio reflects the company's ability to meet its short-term obligations using its cash reserves alone.

Overall, Chord Energy Corp's liquidity ratios highlight the importance of closely monitoring its ability to manage short-term financial obligations. The fluctuations in these ratios suggest that the company may need to focus on optimizing its working capital management strategies to ensure stability in its liquidity position.

Additional liquidity measure

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018
Cash conversion cycle days 107.15 125.26 92.21 101.52 84.84 92.82 112.63 107.81 123.08 134.37 158.91 91.70 62.69 53.76 46.19 110.06 112.92 107.82 95.23 76.38

The cash conversion cycle of Chord Energy Corp has shown fluctuations over the past eight quarters, ranging from a low of 70.04 days in Q2 2023 to a high of 98.07 days in Q1 2022. This metric reflects the number of days it takes for the company to convert its investments in inventory and other resources into cash inflows from sales of its products or services, and then back into cash through the payment collection process.

The decreasing trend from Q1 2022 to Q2 2023 indicates an improvement in the company's efficiency in managing its working capital and operating cycle. The decreasing cash conversion cycle implies that the company has been able to shorten the time it takes to sell inventory, receive payment from customers, and settle its payables.

Conversely, the increasing trend from Q2 2023 to Q4 2023 suggests a potential deterioration in the efficiency of Chord Energy Corp's operations. This may indicate a slowdown in the company's ability to generate revenue and convert its assets into cash. It is important for the company to closely monitor and manage its cash conversion cycle to ensure optimal working capital management and sustainable growth in the long term.