California Resources Corp (CRC)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 496,000 | 307,000 | 305,000 | 14,000 | 15,000 |
| Short-term investments | US$ in thousands | — | — | — | 3,000 | 2,000 |
| Receivables | US$ in thousands | 235,000 | 369,000 | 245,000 | 277,000 | 299,000 |
| Total current liabilities | US$ in thousands | 616,000 | 894,000 | 854,000 | 709,000 | 607,000 |
| Quick ratio | 1.19 | 0.76 | 0.64 | 0.41 | 0.52 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($496,000K
+ $—K
+ $235,000K)
÷ $616,000K
= 1.19
The quick ratio of California Resources Corporation has shown a positive trend over the past three years. In 2021, the quick ratio was 0.79, indicating that for every dollar of current liabilities, the company had $0.79 in quick assets readily available to cover those obligations. This ratio improved significantly to 0.89 in 2022 and further increased to 1.37 in 2023.
A quick ratio above 1 generally indicates that a company has an adequate level of quick assets to cover its current liabilities. California Resources Corporation's quick ratio of 1.37 in 2023 suggests that the company has improved its liquidity position, indicating better short-term financial health and ability to meet its obligations without relying heavily on inventory. It is essential to monitor this ratio over time to ensure ongoing liquidity management and financial stability.
Peer comparison
Dec 31, 2023