Comstock Resources Inc (CRK)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 0.64 | 0.82 | 0.74 | 0.69 | 0.66 | 0.68 |
| Quick ratio | 0.38 | 0.36 | 0.27 | 0.44 | 0.75 | 0.59 | 0.51 | 0.26 | 0.47 | 0.25 | 0.29 | 0.50 | 0.38 | 0.33 | 0.37 | 0.38 | 0.43 | 0.46 | 0.55 | 0.63 |
| 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 |
The liquidity ratios of Comstock Resources, Inc. show some fluctuations over the past eight quarters.
The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has generally been below 1, indicating potential liquidity challenges. While the ratio improved slightly in Q4 2023 compared to the previous quarter, it remains below desirable levels.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, mirrors the trend of the current ratio in this case. Like the current ratio, the quick ratio also stayed below 1 over the past quarters, reflecting a potential inability to cover short-term obligations without relying on inventory.
The cash ratio, representing the most conservative liquidity metric, shows a similar pattern of improvement in Q4 2023 but still at relatively low levels. The company's ability to cover its current liabilities with cash and cash equivalents has been limited, with the ratio consistently below 0.5.
Overall, the liquidity ratios of Comstock Resources, Inc. indicate a need for the company to closely monitor its cash flow and working capital management to ensure it can meet its short-term obligations effectively.
Additional liquidity measure
| 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 conversion cycle | days | -4,863.37 | -3,873.67 | -4,278.20 | -3,290.34 | -4,431.96 | -5,643.26 | -4,378.02 | -3,165.67 | -3,112.38 | -3,482.61 | -3,190.88 | -3,065.91 | -2,801.06 | -2,102.75 | -840.77 | -530.11 | -1,206.65 | -1,089.76 | -1,770.53 | -2,005.61 |
The cash conversion cycle for Comstock Resources, Inc. has shown fluctuations over the past eight quarters. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales.
In Q4 2023, the cash conversion cycle increased to 55.31 days, up from 36.96 days in Q3 2023. This indicates a longer time for the company to convert its investments into cash. It is also higher compared to the cycle observed in Q1 2023 and Q2 2023, suggesting a potential slowdown in the cash conversion process.
Comparing the latest quarter to the same quarter in the prior year, Q4 2023 had a higher cash conversion cycle than Q4 2022, indicating a potential worsening efficiency in managing working capital. However, the cycle is still lower than Q3 2022 when it peaked at 69.04 days.
Overall, Comstock Resources, Inc. should closely monitor its cash conversion cycle to ensure optimal efficiency in managing its working capital and converting investments into cash inflows in a timely manner. fluctuations in the cycle may signify changes in the company's operations or market conditions that could impact its liquidity and financial performance.