Crescent Energy Co (CRGY)

Crescent Energy Co's liquidity ratios fluctuated significantly over the past few quarters. The current ratio, which indicates the company's ability to cover its short-term obligations with its current assets, decreased from 1.87 in June 2024 to 0.93 in September 2024. This suggests a potential deterioration in the company's liquidity position.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also saw fluctuations. It dropped from 1.09 in June 2024 to 0.20 in September 2024, signaling a potential difficulty in meeting immediate payment obligations without relying on inventory.

The cash ratio, which is the most conservative measure of liquidity focusing solely on cash and cash equivalents, followed a similar trend. It decreased from 1.09 in June 2024 to 0.20 in September 2024, indicating a potential strain on the company's cash position.

Overall, based on the trends in the liquidity ratios, Crescent Energy Co may be experiencing liquidity challenges, as evidenced by the declining ratios. Management should closely monitor and manage the company's working capital and cash positions to ensure it can meet its short-term obligations effectively.

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Additional liquidity measure

The cash conversion cycle of Crescent Energy Co has fluctuated significantly over the past few quarters, indicating varying efficiency in managing its cash flow and working capital.

- As of September 30, 2024, the cash conversion cycle stands at 24.26 days, suggesting that Crescent Energy Co takes approximately 24 days to convert its investments in inventory and other resources into cash from sales.
- In the previous quarter, ending June 30, 2024, the company had a cash conversion cycle of 0.00 days, implying an efficient turnaround of cash in the business operations.
- However, in the first quarter of 2024, ending March 31, the company had a negative cash conversion cycle of -68.90 days, indicating that Crescent Energy Co was able to collect cash from sales before paying suppliers, leading to a favorable cash position.
- During the preceding quarter, ending December 31, 2023, the cash conversion cycle was -35.85 days, highlighting a similar trend of efficient cash management.
- In contrast, looking back to September 30, 2023, the company faced challenges with a significantly extended cash conversion cycle of 113.51 days, indicating a prolonged time to convert investments into cash and potential strain on working capital.
- The trend continues with the cash conversion cycle for the quarters ending June 30, 2023, and March 31, 2023, at 199.51 days and -41.85 days, respectively, showcasing fluctuations in cash flow management.
- Going back to December 31, 2022, Crescent Energy Co had a negative cash conversion cycle of -47.02 days, indicating a more favorable position compared to previous quarters.
- The data reveals a notable anomaly in the performance of the cash conversion cycle for the quarter ending September 30, 2022, with an exceptionally negative value of -320.47 days, suggesting potential issues or irregularities in the financial operations.

Overall, Crescent Energy Co experiences varying levels of efficiency in managing its cash conversion cycle, with fluctuations indicating the need for continuous monitoring and improvement in working capital management practices.