CNX Resources Corp (CNX)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.51 | 0.30 | 0.58 | 0.50 | 0.44 | 0.32 | 0.30 | 0.20 | 0.48 | 0.33 | 0.41 | 0.61 | 0.62 | 0.65 | 0.90 | 1.17 | 0.94 | 0.56 | 0.74 | 0.62 |
| Quick ratio | 0.16 | 0.11 | 0.21 | 0.23 | 0.30 | 0.22 | 0.23 | 0.13 | 0.36 | 0.15 | 0.26 | 0.41 | 0.41 | 0.46 | 0.44 | 0.50 | 0.43 | 0.20 | 0.45 | 0.52 |
| Cash ratio | 0.00 | 0.02 | 0.05 | 0.02 | 0.03 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.05 | 0.06 | 0.07 | 0.30 | 0.04 | 0.06 | 0.03 | 0.01 | 0.05 | 0.04 |
The liquidity ratios of CNX Resources Corp provide insight into the company's ability to meet its short-term financial obligations. Looking at the current ratio, which measures the company's ability to cover its current liabilities with its current assets, we see fluctuations over the quarters. The current ratio has ranged from a low of 0.30 to a high of 0.58 in the past year, with the latest value standing at 0.51 in Q4 2023. This indicates that CNX Resources may have had some challenges in meeting its short-term obligations, but the ratio has shown some improvement compared to the prior quarters.
Moving on to the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, we see a similar pattern of fluctuations. The quick ratio has varied between 0.28 and 0.54 over the past year, with the Q4 2023 value at 0.49. This suggests that CNX Resources may have limited ability to cover its current liabilities with its most liquid assets, but again, there has been some improvement in the latest quarter.
Finally, looking at the cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents alone, we observe a consistent increase in the ratio over the quarters. The cash ratio has shown steady growth from 0.07 in Q1 2022 to 0.33 in Q4 2023. This indicates that CNX Resources has been building up its cash reserves, enhancing its ability to meet short-term obligations with cash on hand.
In summary, the liquidity ratios of CNX Resources Corp reflect a mixed picture of its ability to meet short-term financial obligations. While the current and quick ratios have shown some improvement in the latest quarter, indicating better liquidity position, the company's increasing cash ratio suggests a strengthening cash position which can enhance its short-term solvency. Further analysis and monitoring of these ratios will be essential to assess CNX Resources' ongoing liquidity management.
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -334.80 | -441.10 | -341.58 | -393.84 | -362.88 | -288.50 | -307.72 | -276.59 | -282.52 | -161.85 | -195.57 | -181.86 | -17.91 | -19.49 | -14.86 | -28.88 | -142.77 | -844.64 | -903.99 | -638.92 |
The cash conversion cycle of CNX Resources Corp has shown improvement over the recent quarters, indicating better management of the company's working capital.
In Q1 2022, the cash conversion cycle was 35.87 days, which decreased to 14.52 days by Q1 2023. This significant reduction in the cash conversion cycle implies that the company has been able to convert its investments in inventory and receivables into cash more efficiently.
The trend continued to Q4 2023, where the cash conversion cycle further decreased to 14.24 days. This indicates that CNX Resources Corp has been able to streamline its operations and manage its cash flows more effectively, leading to a shorter time taken to convert its resources into cash.
Overall, the decreasing trend in the cash conversion cycle suggests that CNX Resources Corp is managing its working capital more efficiently, which is a positive indicator for the company's liquidity and financial health.