California Resources Corp (CRC)

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 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 0.69 0.71 0.86 0.84
Quick ratio 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 0.41 0.37 0.43 0.49
Cash ratio 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 0.02 0.03 0.04 0.06

The liquidity ratios of California Resources Corporation indicate the company's ability to meet its short-term financial obligations.

The current ratio has shown an improving trend over the past year, with a noticeable increase from 0.97 in Q4 2022 to 1.51 in Q4 2023. This ratio signifies that the company has $1.51 in current assets for every $1 in current liabilities, indicating a stronger ability to cover its short-term obligations.

Similarly, the quick ratio has also demonstrated a positive trend, improving from 0.89 in Q4 2022 to 1.37 in Q4 2023. This ratio, which excludes inventory from current assets, shows that the company has $1.37 in liquid assets that can be quickly converted to cash to cover each dollar of current liabilities.

The cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, has shown improvement as well. It increased from 0.53 in Q4 2022 to 1.02 in Q4 2023, indicating that California Resources Corporation has strengthened its cash position relative to its short-term obligations.

Overall, the improving trends in all three liquidity ratios suggest that California Resources Corporation has enhanced its financial flexibility and is better positioned to meet its short-term obligations.

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 -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 0.43 -10.68 -8.56 -2.38

The cash conversion cycle of California Resources Corporation has shown fluctuations over the past five quarters. In Q4 2023, the company's cash conversion cycle was 28.15 days, representing a significant improvement from the previous quarter's cycle of 32.17 days. This indicates that the company was able to convert its investments in raw materials and inventory into cash more efficiently during this period.

However, when compared to Q2 2023, where the cash conversion cycle was only 19.52 days, the Q4 2023 value suggests a slight increase in the number of days it takes for the company to convert its investments into cash. Similarly, compared to Q1 2023, when the cycle was 25.40 days, the Q4 2023 value is also higher.

Furthermore, if we compare the Q4 2023 data to the same quarter in the previous year (Q4 2022), we can see a notable improvement in the cash conversion cycle from 43.96 days to 28.15 days. This signifies that the company has become more efficient in managing its working capital and converting it into cash over the year.

Overall, the fluctuation in California Resources Corporation's cash conversion cycle indicates varying levels of operational efficiency and working capital management over the analyzed quarters. Further analysis and comparison with industry benchmarks could provide deeper insights into the company's financial performance and management of cash flow.