Crescent Energy Co (CRGY)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 0.95 | 0.82 | 0.58 | 0.78 | 1.83 |
| Quick ratio | 0.16 | 0.00 | -0.01 | 0.21 | 0.31 |
| Cash ratio | 0.16 | 0.00 | -0.01 | 0.21 | 0.31 |
Crescent Energy Co's liquidity ratios indicate fluctuations in its ability to meet short-term obligations over the years under review. The current ratio decreased from 1.83 in 2020 to 0.95 in 2024. Although the ratio remains above 1 in most years, the declining trend raises concerns about the company's overall liquidity position and its ability to cover current liabilities with current assets.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, shows a decreasing trend from 0.31 in 2020 to 0.16 in 2024. This trend suggests that Crescent Energy Co may struggle to meet its short-term obligations without relying on selling its inventory in 2024.
The cash ratio, which measures the ability to cover current liabilities with cash and cash equivalents, follows a similar declining trend from 0.31 in 2020 to 0.16 in 2024. This indicates a decreasing ability to settle short-term obligations using readily available cash resources.
Overall, Crescent Energy Co's liquidity ratios demonstrate a weakening liquidity position over the years, indicating a potential need to improve working capital management and increase cash reserves to ensure financial stability and meet short-term obligations in the future.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 32.06 | 33.51 | 0.00 | 0.80 |
The cash conversion cycle of Crescent Energy Co has shown fluctuations over the years. From December 31, 2020, where it stood at 0.80 days, the company improved significantly to achieve a zero-day cash conversion cycle by December 31, 2021. However, there was a notable increase in the cash conversion cycle to 33.51 days by December 31, 2022, and a slight decrease to 32.06 days by December 31, 2023. Ultimately, the company managed to return to a zero-day cash conversion cycle by December 31, 2024. These fluctuations indicate varying efficiency in managing working capital and converting inventory and receivables into cash. Further analysis may be needed to understand the reasons behind these changes in the cash conversion cycle.