Comstock Resources Inc (CRK)
Liquidity ratios
| Dec 31, 2024 | 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 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.46 | 0.60 | 0.59 | 0.64 | 0.68 | 0.50 | 0.37 | 0.67 | 0.85 | 0.65 | 0.55 | 0.29 | 0.50 | 0.29 | 0.34 | 0.56 | 0.45 | 0.39 | 0.66 | 0.82 |
| Quick ratio | 0.01 | 0.03 | 0.03 | 0.01 | 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 |
| Cash ratio | 0.01 | 0.03 | 0.03 | 0.01 | 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 |
The liquidity ratios of Comstock Resources Inc indicate the company's ability to meet its short-term obligations. The current ratio, which measures current assets against current liabilities, fluctuated over the period analyzed, ranging from a low of 0.29 to a high of 0.85. A current ratio below 1 may suggest potential difficulties in meeting short-term obligations, and Comstock Resources Inc experienced some periods of lower liquidity.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also varied significantly, with values as low as 0.01 and as high as 0.18. A quick ratio below 1 indicates a potential inability to cover immediate liabilities without relying on the sale of inventory.
The cash ratio, which focuses solely on cash and cash equivalents as a proportion of current liabilities, showed similar fluctuations, with values ranging from 0.01 to 0.18. This ratio assesses the company's ability to pay off its short-term liabilities with readily available cash.
Overall, the liquidity ratios of Comstock Resources Inc suggest some periods of lower liquidity levels, indicating potential challenges in meeting short-term obligations without relying on selling inventory or other assets. Monitoring these ratios over time is crucial for assessing the company's ongoing liquidity position and financial health.
Additional liquidity measure
| Dec 31, 2024 | 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 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 6.58 | 4.51 | 10.40 | 10.10 | 0.82 | 0.89 | 1.25 | 2.43 | 13.10 | 5.74 | 2.55 | 1.70 | 4.75 | 0.00 | 65.02 |
The cash conversion cycle is a critical financial metric that indicates the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. In the case of Comstock Resources Inc, a fluctuating trend can be observed in the cash conversion cycle over the provided periods.
On March 31, 2020, the company's cash conversion cycle stood at 65.02 days, indicating a lengthy period between investing in resources and realizing cash from sales. However, by June 30, 2020, the cycle decreased drastically to 0.00 days, possibly implying a more efficient management of inventory and cash flows.
Subsequently, the cycle increased slightly to 4.75 days on September 30, 2020, and further improved to 1.70 days by December 31, 2020. This trend suggests that the company may have optimized its working capital management during these periods.
Throughout the following quarters, the cash conversion cycle showed varying levels of fluctuations, with some periods demonstrating further improvements in efficiency (e.g., March 31, 2021 - 2.55 days) and others experiencing slight increases (e.g., September 30, 2021 - 13.10 days).
Overall, while there were fluctuations in the cash conversion cycle of Comstock Resources Inc during the analyzed periods, the trend indicates efforts towards optimizing working capital management and potentially enhancing cash flow operations. It is crucial for the company to monitor this metric closely to ensure efficient management of its resources and cash flows in the future.