Core Natural Resources, Inc. (CNR)

Core Natural Resources, Inc.'s liquidity ratios show a trend of declining liquidity from 2020 to 2022, followed by a slight improvement in 2023 and 2024. The current ratio, which measures the company's ability to cover short-term obligations with current assets, decreased from 2.68 in 2020 to 1.33 in 2022 before increasing to 1.52 in 2024. This indicates that the company may have faced challenges in meeting its short-term obligations in 2022 but strengthened its liquidity position in the subsequent years.

The quick ratio, which provides a more stringent assessment of liquidity by excluding inventory from current assets, also experienced a decline from 1.01 in 2020 to 0.61 in 2022 before recovering to 0.89 in 2024. This indicates that Core Natural Resources, Inc. may have struggled to meet its immediate liquidity needs in 2022 but showed improvement in its ability to cover short-term liabilities without relying on selling inventory in the later years.

The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, followed a similar pattern as the quick ratio, declining from 1.01 in 2020 to 0.61 in 2022 before rising to 0.89 in 2024. This suggests that the company may have had lower cash reserves relative to its current liabilities in 2022 but managed to bolster its cash position in the following years.

Overall, Core Natural Resources, Inc. exhibited a fluctuating liquidity position over the analyzed period, with a notable liquidity challenge in 2022 but an improvement in liquidity in 2023 and 2024. The company's ability to maintain or further enhance its liquidity position will be crucial for meeting its short-term obligations and sustaining its operations effectively.

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Additional liquidity measure

Core Natural Resources, Inc.'s cash conversion cycle has shown a significant improvement from 628.74 days as of December 31, 2020, to 69.88 days as of December 31, 2021. This indicates a more efficient management of the company's working capital during this period. Subsequently, the trend continues to show positive performance with further reductions in the cash conversion cycle to 59.11 days as of December 31, 2022, 60.10 days as of December 31, 2023, and then a slight increase to 70.57 days as of December 31, 2024. Overall, the decreasing trend from 2020 to 2023 suggests that Core Natural Resources, Inc. has been able to streamline its operations and manage its cash flow more effectively, even though there was a slight increase in 2024.