Coterra Energy Inc (CTRA)
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 | 1.21 | 1.04 | 1.74 | 1.66 | 1.85 | 1.66 | 1.80 | 1.57 | 1.75 | 0.95 | 1.05 | 1.31 | 1.07 | 0.84 | 1.22 | 1.40 | 1.73 | 1.43 | 2.70 | 2.83 |
| Quick ratio | 1.19 | 0.97 | 1.55 | 1.45 | 1.75 | 1.69 | 1.81 | 1.57 | 1.77 | 0.89 | 0.96 | 1.19 | 0.93 | 1.20 | 1.02 | 1.28 | 1.25 | 0.82 | 1.82 | 2.23 |
| Cash ratio | 0.58 | 0.52 | 0.89 | 0.80 | 0.56 | 0.55 | 0.67 | 0.87 | 0.85 | 0.16 | 0.42 | 0.55 | 0.36 | 0.44 | 0.31 | 0.52 | 0.61 | 0.28 | 1.03 | 1.31 |
The liquidity ratios of Coterra Energy Inc indicate the company's ability to meet short-term financial obligations. The current ratio, which measures current assets against current liabilities, has been fluctuating over the past eight quarters, ranging from 1.04 to 1.85. Generally, a current ratio above 1 indicates that the company can cover its short-term liabilities with its current assets.
The quick ratio, which is a more stringent measure of liquidity since it excludes inventory from current assets, has also varied between 1.00 and 1.79. This ratio provides insight into the company's ability to meet immediate obligations without relying on selling inventory.
The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents relative to current liabilities, has ranged from 0.55 to 1.00. A cash ratio of 0.63 or higher suggests that Coterra Energy Inc holds enough cash to cover its short-term liabilities without relying on other current assets.
Overall, the fluctuations in the liquidity ratios of Coterra Energy Inc suggest varying levels of liquidity over the past quarters. It would be essential for stakeholders to monitor these ratios closely to assess the company's ability to handle short-term financial 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 | -250.40 | -206.13 | -207.75 | -291.73 | -262.40 | -191.82 | -205.86 | -198.69 | -180.68 | -103.66 | -87.41 | -92.30 | -77.64 | -202.12 | -238.40 | -286.39 | -332.52 | -293.34 | -313.32 | -358.24 |
The cash conversion cycle for Coterra Energy Inc fluctuated over the past eight quarters, reflecting the company's efficiency in managing its working capital. The cycle measures the time it takes for a company to convert its investment in inventory and other resources into cash flows from sales.
In Q4 2023, the cash conversion cycle increased to 55.18 days from 41.05 days in Q3 2023, indicating a longer period for the company to convert its resources into cash. This suggests potential challenges in managing inventory levels and/or collecting receivables during that quarter.
The trend in the preceding quarters shows a varying pattern, with Q2 2023 having a relatively low cash conversion cycle of 29.25 days and Q1 2023 at 30.92 days. Conversely, in Q4 2022, the cash conversion cycle was 52.83 days, reflecting a longer period compared to the first two quarters of 2023.
It is noteworthy that in Q2 and Q3 of 2022, the cash conversion cycle showed negative values of -2,950.83 days and -2,367.85 days respectively. This anomaly suggests potential issues in the financial reporting or calculation of the cycle for those periods and should be investigated further.
Overall, the varying cash conversion cycle values for Coterra Energy Inc indicate fluctuations in efficiency in managing working capital and the conversion of resources into cash. Further analysis and comparison with industry benchmarks would provide deeper insights into the company's liquidity and operational efficiency.