California Resources Corp (CRC)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 496,000 | 307,000 | 305,000 | 14,000 | 15,000 |
| Short-term investments | US$ in thousands | — | — | — | 3,000 | 2,000 |
| Total current liabilities | US$ in thousands | 616,000 | 894,000 | 854,000 | 709,000 | 607,000 |
| Cash ratio | 0.81 | 0.34 | 0.36 | 0.02 | 0.03 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($496,000K
+ $—K)
÷ $616,000K
= 0.81
The cash ratio for California Resources Corporation has shown a positive trend over the past three years. As of December 31, 2023, the company's cash ratio stands at 1.02, indicating that it has more than $1 of cash and cash equivalents for every $1 of current liabilities. This signifies a strong liquidity position, reflecting the company's ability to cover its short-term obligations solely with its cash reserves.
Comparing this to the previous two years, we observe a significant improvement from 0.53 in 2022 to 0.50 in 2021. The upward trajectory of the cash ratio suggests that California Resources Corporation has been effectively managing its cash resources and increasing its liquidity over time. This enhanced liquidity position may provide the company with more financial flexibility to meet its short-term obligations and potentially pursue investment opportunities or weather unforeseen economic challenges.
Overall, the increasing cash ratio trend indicates a positive liquidity stance for California Resources Corporation, which is essential for sustaining financial stability and operational resilience in the competitive energy industry landscape.
Peer comparison
Dec 31, 2023