Crescent Energy Co (CRGY)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	136,151	778,115	5,321	2,974	228,614	2,253	2,930	0	22,478
Short-term investments	US$ in thousands	52,225	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	929,753	712,314	748,076	750,257	880,798	672,432	786,116	893,749	1,039,880
Cash ratio		0.20	1.09	0.01	0.00	0.26	0.00	0.00	0.00	0.02

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($136,151K + $52,225K) ÷ $929,753K
= 0.20

The cash ratio of Crescent Energy Co has shown some fluctuation over the past few quarters. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.

Looking at the data provided:
- In September 2024, the cash ratio was 0.20, indicating that Crescent Energy Co had 20 cents of cash and cash equivalents for every dollar of short-term liabilities. This ratio decreased significantly from the previous quarter.
- In June 2024, the ratio was 1.09, which was a substantial improvement from the previous quarter and reflected a strong ability to cover short-term obligations.
- In March 2024, the cash ratio was very low at 0.01, indicating a limited ability to cover short-term liabilities with cash on hand.
- In December 2023, the ratio was 0.00, suggesting the company had minimal cash reserves relative to its short-term obligations.
- In the earlier quarters of 2023 and 2022, the cash ratios were very low or 0.00, indicating a consistent pattern of minimal cash reserves relative to short-term liabilities.

Overall, the cash ratio of Crescent Energy Co has been variable, with periods of both strength and weakness in its ability to cover short-term obligations. It would be crucial for the company to maintain a healthy cash position to ensure liquidity and financial stability. Management may need to closely monitor and potentially improve the company's cash management practices to ensure sufficient liquidity for meeting short-term obligations.