CNX Resources Corp (CNX)

The liquidity ratios of CNX Resources Corp have exhibited a declining trend over the past five years.

The current ratio, which measures the company's ability to meet short-term obligations with short-term assets, has decreased from 0.94 in 2019 to 0.51 in 2023. This indicates that the company may be facing challenges in covering its current liabilities with its current assets.

The quick ratio, a stricter measure of liquidity that excludes inventories from current assets, has followed a similar trend, declining from 0.93 in 2019 to 0.49 in 2023. This suggests that CNX Resources Corp may have limited ability to quickly meet its short-term obligations without relying on inventory.

The cash ratio, which provides insight into the company's ability to cover current liabilities with cash and cash equivalents, displayed a fluctuating pattern over the years. The ratio was at its highest in 2019 at 0.53 but dropped to 0.33 in 2023. This implies that the company may have somewhat improved its cash position compared to other current assets, but the level of cash on hand may still be insufficient to cover current liabilities effectively.

Overall, the liquidity ratios of CNX Resources Corp indicate a concerning trend of decreasing liquidity levels, which may raise questions about the company's short-term financial health and ability to meet its obligations. Management should closely monitor these ratios and take appropriate measures to improve liquidity and ensure financial stability.

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Additional liquidity measure

The cash conversion cycle of CNX Resources Corp has shown a decreasing trend over the past five years. From December 31, 2019, where the cash conversion cycle stood at 49.47 days, there has been a gradual improvement in efficiency, with the cycle decreasing to 14.24 days by December 31, 2023.

The decreasing cash conversion cycle indicates that CNX Resources Corp has been able to manage its working capital more efficiently over the years. This could be attributed to better inventory management, faster collection of receivables, or a longer time taken to pay its payables.

Overall, the decreasing trend in the cash conversion cycle of CNX Resources Corp is a positive indication of the company's ability to efficiently convert its investments in raw materials and other resources into cash flow. It suggests improved liquidity and working capital management, which can positively impact the company's financial health and performance.