Coterra Energy Inc (CTRA)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,038,000 | 956,000 | 673,000 | 1,036,000 | 140,000 |
| Short-term investments | US$ in thousands | — | 0 | — | — | 113 |
| Receivables | US$ in thousands | 1,104,000 | 1,012,000 | 1,418,000 | 1,120,000 | 220,895 |
| Total current liabilities | US$ in thousands | 1,136,000 | 1,660,000 | 1,193,000 | 1,220,000 | 390,000 |
| Quick ratio | 2.77 | 1.19 | 1.75 | 1.77 | 0.93 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,038,000K
+ $—K
+ $1,104,000K)
÷ $1,136,000K
= 2.77
The quick ratio of Coterra Energy Inc has shown varying trends over the past five years. The ratio indicates the company's ability to meet its short-term obligations with its most liquid assets.
In December 31, 2020, the quick ratio was 0.93, suggesting that Coterra Energy had limited ability to cover its short-term liabilities with its quick assets alone. However, in the subsequent years, the company's quick ratio improved significantly, reaching 1.77 in December 31, 2021, and continuing to maintain a strong position above 1 in the following years.
The peak quick ratio of 2.77 on December 31, 2024, indicates that Coterra Energy had more than enough quick assets to cover its current liabilities. This trend shows an improvement in the company's liquidity position over the years, reflecting a more favorable ability to meet its short-term financial obligations without relying extensively on inventory or other less liquid assets.
Overall, the increasing trend in Coterra Energy's quick ratio suggests a strengthening liquidity position, which can enhance the company's financial stability and ability to weather short-term financial challenges effectively.
Peer comparison
Dec 31, 2024