Crescent Energy Co (CRGY)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Cash | US$ in thousands | 2,974 | 0 | 128,578 |
| Short-term investments | US$ in thousands | — | — | — |
| Receivables | US$ in thousands | — | 459,752 | 342,196 |
| Total current liabilities | US$ in thousands | 750,257 | 893,749 | 616,125 |
| Quick ratio | 0.00 | 0.51 | 0.76 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,974K
+ $—K
+ $—K)
÷ $750,257K
= 0.00
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. Crescent Energy Co's quick ratio has decreased from 0.76 in 2021 to 0.51 in 2022, and further dropped to 0.00 in 2023.
A quick ratio of 0.00 in 2023 indicates that the company's current assets that can be quickly converted to cash, such as cash, marketable securities, and accounts receivable, are unable to cover its current liabilities. This may raise concerns about Crescent Energy Co's short-term liquidity position to meet its immediate financial obligations.
The decreasing trend in the quick ratio over the past three years suggests either a decrease in liquid assets or an increase in current liabilities, or a combination of both. Investors and creditors may view a declining quick ratio negatively as it may indicate potential difficulties in meeting short-term financial obligations without having to rely on selling inventory or obtaining additional financing.
Crescent Energy Co should closely monitor its liquidity position, manage its current assets and liabilities effectively, and consider strategies to improve its quick ratio to ensure financial stability and meet its short-term obligations in the future.
Peer comparison
Dec 31, 2023