Coterra Energy Inc (CTRA)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 956,000 | 673,000 | 1,036,000 | 140,000 | 200,227 |
| Short-term investments | US$ in thousands | — | — | — | 113 | — |
| Total current liabilities | US$ in thousands | 1,660,000 | 1,193,000 | 1,220,000 | 390,000 | 328,034 |
| Cash ratio | 0.58 | 0.56 | 0.85 | 0.36 | 0.61 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($956,000K
+ $—K)
÷ $1,660,000K
= 0.58
The cash ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position.
Analyzing Coterra Energy Inc's cash ratio over the past five years, we observe fluctuations in the ratio. The ratio decreased from 0.62 in 2019 to 0.43 in 2020, indicating a decline in liquidity. However, there was an improvement in 2021 with a cash ratio of 0.86, suggesting better ability to cover short-term obligations. The ratio declined in 2022 to 0.69 but remained above the 2020 level. In 2023, the cash ratio further decreased to 0.63, indicating a slightly weaker liquidity position compared to the previous year.
Overall, Coterra Energy Inc's cash ratio trend demonstrates variability in liquidity over the years, with fluctuations indicating potential variations in the company's ability to meet short-term liabilities solely with its cash holdings. Further analysis along with other liquidity ratios would provide a more comprehensive understanding of the company's liquidity position.
Peer comparison
Dec 31, 2023