Comstock Resources Inc (CRK)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	16,669	54,652	30,663	30,272	18,532
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	239,742	510,127	267,738	139,615	149,981
Total current liabilities	US$ in thousands	681,491	756,137	633,984	441,592	392,376
Quick ratio		0.38	0.75	0.47	0.38	0.43

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($16,669K + $—K + $239,742K) ÷ $681,491K
= 0.38

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. A quick ratio of less than 1 indicates that the company may have difficulty covering its current liabilities with its liquid assets alone.

Analyzing the quick ratio of Comstock Resources, Inc. over the past five years, we observe fluctuations in the ratio. In 2023, the quick ratio stood at 0.68, showing a decrease from the previous year's ratio of 0.81. This suggests a decline in the company's ability to cover its current liabilities with its quick assets.

Compared to the ratios in 2021, 2020, and 2019, the quick ratio in 2023 is still higher, indicating a relatively better liquidity position. However, the ratio remains below 1, indicating a potential liquidity risk if the company faces unexpected financial obligations.

Further analysis of the components contributing to the quick ratio, such as cash, marketable securities, and accounts receivable, would provide more insight into Comstock Resources, Inc.'s liquidity management practices and potential areas for improvement.