Comstock Resources Inc (CRK)

Cash ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	16,669	19,835	9,919	33,677	54,652	38,648	32,272	12,137	30,663	27,841	19,727	77,435	30,272	28,268	11,595	15,527	18,532	53,243	46,747	29,324
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	681,491	659,961	762,062	628,311	756,137	1,091,530	964,661	938,487	633,984	1,063,460	655,525	433,584	441,592	380,782	290,966	327,619	392,376	389,460	228,625	198,086
Cash ratio		0.02	0.03	0.01	0.05	0.07	0.04	0.03	0.01	0.05	0.03	0.03	0.18	0.07	0.07	0.04	0.05	0.05	0.14	0.20	0.15

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($16,669K + $—K) ÷ $681,491K
= 0.02

The cash ratio measures the ability of a company to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position and suggests that the company is better equipped to meet its obligations.

Looking at Comstock Resources, Inc.'s cash ratio over the past eight quarters, there is a noticeable improvement in the ratio from Q1 2022 to Q4 2023. The cash ratio has shown an increasing trend over this period, which is a positive sign for the company's liquidity position.

In Q4 2023, Comstock Resources, Inc. had a cash ratio of 0.33, which means that for every dollar of current liabilities, the company had $0.33 in cash and cash equivalents. This indicates an improvement in the company's ability to meet its short-term obligations solely from its cash reserves.

The fluctuation in the cash ratio in the earlier quarters may indicate varying levels of cash holdings and short-term liabilities. However, the consistent increase in the cash ratio from Q1 2023 to Q4 2023 suggests that Comstock Resources, Inc. has been managing its cash position effectively and strengthening its liquidity position over time.

Overall, the upward trend in the cash ratio indicates an improvement in Comstock Resources, Inc.'s ability to handle its short-term financial obligations with its available cash resources. It suggests that the company has been focusing on enhancing its liquidity position, which is a key aspect of financial stability and solvency.