California Resources Corp (CRC)
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 | 1.04 | 0.97 | 2.43 | 1.41 | 1.51 | 1.34 | 1.49 | 1.36 | 0.97 | 0.95 | 0.70 | 0.69 | 0.88 | 0.69 | 0.65 | 0.74 | 0.70 | 0.35 | 0.07 | 0.66 |
| Quick ratio | 0.81 | 0.67 | 2.15 | 5.06 | 1.19 | 1.08 | 1.14 | 1.05 | 0.76 | 0.73 | 0.55 | 0.52 | 0.64 | 0.47 | 0.44 | 0.53 | 0.43 | 0.23 | 0.04 | 0.39 |
| Cash ratio | 0.38 | 0.27 | 1.74 | 4.62 | 0.81 | 0.69 | 0.77 | 0.67 | 0.34 | 0.38 | 0.27 | 0.27 | 0.36 | 0.20 | 0.17 | 0.21 | 0.06 | 0.10 | 0.02 | 0.14 |
Based on the provided data, the liquidity ratios of California Resources Corp show fluctuations over time.
- Current Ratio: This ratio measures the company's ability to meet its short-term obligations with its current assets. The current ratio has been volatile over the periods examined, ranging from a low of 0.07 on June 30, 2020, to a high of 2.43 on June 30, 2024. The ratio has shown improvement more recently, exceeding 1.0 from March 31, 2023, indicating the company's current assets are more than its current liabilities.
- Quick Ratio: The quick ratio provides a more stringent assessment of liquidity by excluding inventory from current assets. Similar to the current ratio, the quick ratio has experienced fluctuations but generally improved towards the end of the period. It reached a high of 5.06 on March 31, 2024, suggesting the company had a significant amount of liquid assets to cover its short-term liabilities.
- Cash Ratio: The cash ratio is the most conservative liquidity measure, focusing solely on the company's cash and cash equivalents compared to its current liabilities. This ratio also displayed variability over time, with a significant increase observed in March 31, 2024. However, the company maintained a relatively stable cash position to cover its obligations.
Overall, the liquidity ratios of California Resources Corp have shown improvement in more recent periods, indicating better short-term financial health and the ability to meet its current obligations. However, monitoring these ratios consistently is essential to ensure the company maintains adequate liquidity levels.
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 | -295.42 | -203.91 | -160.03 | -150.87 | -148.77 | -122.77 | -122.32 | -187.67 | -285.81 | -244.65 | -198.45 | -194.80 | -190.60 | -222.83 | -237.48 | -181.15 | 18.04 | 15.35 | 9.92 | -1.18 |
The cash conversion cycle measures the efficiency of a company in converting its investments in raw materials and other inputs into cash received from sales. California Resources Corp's cash conversion cycle has shown significant fluctuations over the periods indicated in the data.
From March 31, 2020, to December 31, 2024, the company's cash conversion cycle has generally been negative, indicating that it takes less time for California Resources Corp to convert its investments into cash received from sales. This can be a positive sign as it suggests the company is able to quickly recover its cash invested in the production cycle.
The cycle experienced a range of values, with the shortest cycle being -295.42 days on December 31, 2024. Negative values generally suggest an efficient working capital management where the company is able to collect cash from sales before paying suppliers, thereby generating cash inflows.
However, it is important to note that negative cash conversion cycle values may also indicate aggressive inventory management or extended payment terms with suppliers, which might not always be sustainable or reflective of overall financial health.
Overall, while California Resources Corp has shown a generally efficient cash conversion cycle with negative values, further analysis is needed to understand the company's specific operational and financial strategies that have influenced these results.