Core Natural Resources, Inc. (CNR)

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 1.52 1.65 1.53 1.47 1.35 1.28 1.40 1.38 1.33 1.08 2.92 2.43 2.32 2.54 2.18 2.59 2.68 2.49 2.57 2.44
Quick ratio 0.89 0.24 0.21 0.61 0.63 0.55 0.70 0.61 1.05 0.81 1.20 0.61 0.46 0.83 0.11 0.92 1.01 0.90 0.82 0.76
Cash ratio 0.89 0.24 0.21 0.61 0.63 0.55 0.70 0.61 0.61 0.52 1.20 0.61 0.46 0.83 0.11 0.92 1.01 0.90 0.82 0.76

Core Natural Resources, Inc.'s current ratio, a key liquidity measure, has fluctuated over the past few years, ranging from a high of 2.92 in June 2022 to a low of 1.08 in September 2022, showing some instability in the company's ability to cover its short-term obligations with its current assets. The current ratio was relatively stable in the range of 2.4 to 2.7 from March 2020 to December 2022 but declined significantly thereafter.

In contrast, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also displayed some inconsistency. The quick ratio decreased sharply in June 2021 to 0.11, indicating a potential challenge in meeting short-term liabilities without relying on inventory. It gradually improved to 1.20 in June 2022 but later decreased to 0.21 in June 2024.

The cash ratio, which focuses solely on cash and cash equivalents to cover short-term liabilities, followed a similar trend as the quick ratio, dropping to 0.11 in June 2021 before improving to 1.20 in June 2022. However, it declined again to 0.21 in June 2024, indicating potential cash flow issues and the need for careful management of cash resources.

Overall, Core Natural Resources, Inc. should monitor its liquidity ratios closely and ensure sufficient cash flow and quick asset conversion to meet its short-term obligations effectively and maintain financial stability.

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 70.57 502.04 443.49 74.67 60.10 71.95 77.99 83.25 -29.69 -21.78 705.88 888.73 832.17 709.88 171.44 157.99 141.70 135.87 648.83 738.78

Core Natural Resources, Inc.'s cash conversion cycle provides insight into how efficiently the company manages its working capital. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and accounts receivable into cash flow from sales.

From March 31, 2020, to December 31, 2024, Core Natural Resources, Inc.'s cash conversion cycle experienced fluctuations. Initially, the company had a high cash conversion cycle of 738.78 days in March 2020, indicating a lengthy period to convert investments into cash. Subsequently, the cycle improved significantly, reaching a low of -29.69 days in December 2022, suggesting efficient management of working capital and quick conversion of assets into cash.

However, there were later spikes in the cash conversion cycle, notably in June 2022, September 2022, and December 2022, where the company experienced negative figures, potentially indicating issues with managing cash flow effectively. By March 31, 2024, the cycle increased to 443.49 days, indicating a longer period to convert investments into cash compared to previous periods.

Overall, Core Natural Resources, Inc. should focus on maintaining a balance in its cash conversion cycle to ensure efficient management of working capital and timely conversion of assets into cash to support its operations and growth. Regular monitoring and improvement in this metric are essential for the company's financial health and sustainability.