Chord Energy Corp (CHRD)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	36,950	317,998	593,151	172,114	15,856
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	1,683,980	1,165,460	1,361,330	1,225,200	341,231
Quick ratio		0.02	0.27	0.44	0.14	0.05

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($36,950K + $—K + $—K) ÷ $1,683,980K
= 0.02

The quick ratio of Chord Energy Corp has shown significant fluctuations over the years based on the provided data. As of December 31, 2020, the quick ratio was only 0.05, indicating that the company had a very low level of liquid assets relative to its current liabilities. However, there was an improvement in the quick ratio to 0.14 by December 31, 2021, which suggests a slight increase in the company's ability to meet short-term obligations using its quick assets.

The quick ratio saw a notable improvement to 0.44 by December 31, 2022, signaling a substantial strengthening of the company's liquidity position compared to the prior year. This improvement indicates that Chord Energy Corp had a higher proportion of liquid assets to cover its current liabilities, potentially enhancing its short-term financial stability.

There was a slight decline in the quick ratio to 0.27 by December 31, 2023, which may suggest a decrease in the company's ability to quickly cover its short-term obligations using its liquid assets compared to the previous year. However, the quick ratio remained above 1, indicating that the company still had sufficient quick assets to meet its immediate liquidity needs.

By December 31, 2024, the quick ratio dropped significantly to 0.02, signifying a considerable decrease in the company's liquidity position. This decline may raise concerns about Chord Energy Corp's ability to readily meet its short-term financial obligations with its available quick assets.

Overall, the fluctuating trend in Chord Energy Corp's quick ratio indicates varying levels of liquidity and the company's ability to cover short-term liabilities with its liquid assets over the years. It is essential for the company to closely monitor its quick ratio and take necessary steps to maintain a healthy liquidity position to ensure financial stability.