Chord Energy Corp (CHRD)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Current ratio 0.94 0.93 0.96 1.14 1.22 1.02 0.96 1.18 1.09 0.98 0.89 1.06 1.32 1.13 1.06 0.83 0.80 0.59 1.16 1.31
Quick ratio 0.02 0.05 0.12 0.24 0.27 0.19 0.18 0.47 0.44 0.44 0.46 0.46 0.14 0.67 0.56 0.22 0.05 0.15 0.21 0.27
Cash ratio 0.02 0.05 0.12 0.24 0.27 0.19 0.18 0.47 0.44 0.44 0.46 0.46 0.14 0.67 0.56 0.22 0.05 0.15 0.21 0.27

Chord Energy Corp's liquidity ratios show fluctuating trends over the years.

The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, has ranged from a low of 0.59 in September 30, 2020, to a high of 1.32 in December 31, 2021. Overall, the current ratio has shown some variability but has generally stayed above 1, indicating that the company has been able to meet its short-term obligations.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has shown greater fluctuations. The quick ratio has ranged from a low of 0.05 in December 31, 2020, to a high of 0.67 in September 30, 2021. The quick ratio below 1 in many periods suggests that the company may have had difficulty meeting its short-term obligations without relying on selling inventory.

The cash ratio, which is the strictest measure of liquidity as it only considers cash and cash equivalents, has also shown variability. The cash ratio has ranged from a low of 0.02 in December 31, 2024, to a high of 0.67 in September 30, 2021. The low cash ratios in some periods indicate that the company may have had limited cash on hand to cover its immediate liabilities.

Overall, while the current ratio has generally been above 1, indicating a satisfactory liquidity position, the quick ratio and cash ratio have displayed more volatility, suggesting potential challenges in meeting short-term obligations without relying on inventory or having sufficient cash reserves. It is essential for Chord Energy Corp to continuously monitor its liquidity position to ensure it can meet its financial commitments promptly.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Cash conversion cycle days 8.70 8.31 9.62 10.41 10.75 9.83 10.46 10.93 10.70 14.06 12.89 10.31 12.46 14.13 17.00 17.29 14.69 10.72 9.11 7.70

The cash conversion cycle of Chord Energy Corp indicates the number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle generally reflects efficient operations and effective management of working capital.

Analyzing the data provided, we observe fluctuations in Chord Energy Corp's cash conversion cycle over the quarters. The cycle was relatively stable at around 7 to 10 days in the earlier periods. However, there was a noticeable increase in the cycle to around 14 to 17 days in the subsequent quarters, reflecting a potential delay in the conversion of investments into cash.

In more recent periods, the cash conversion cycle improved to around 8 to 10 days, suggesting enhanced efficiency in managing working capital and liquidity. This reduction in the cycle indicates that the company is now able to convert its investments into cash more quickly, which can positively impact its liquidity position and overall financial health.

Overall, while there have been fluctuations in Chord Energy Corp's cash conversion cycle, the recent trend towards a shorter cycle is a positive indicator of improved operational efficiency and effective management of working capital.