CVR Energy Inc (CVI)

The liquidity ratios of CVR Energy Inc show a mixed trend over the years. The current ratio, which measures short-term liquidity and the ability to meet current obligations, decreased steadily from 2.13 in December 2020 to 1.11 in December 2022, before showing a slight improvement to 1.30 in December 2023 and further increase to 1.66 in December 2024. This indicates a fluctuation in the company's ability to cover its current liabilities with current assets.

The quick ratio, a more stringent measure of liquidity that excludes inventories, also exhibited a declining trend from 1.61 in December 2020 to 0.62 in December 2022, signifying potential challenges in meeting short-term obligations without relying on inventory assets. However, the ratio improved significantly to 1.18 in December 2024, indicating a better ability to cover immediate liabilities with more liquid assets.

The cash ratio, which provides the most conservative measure of liquidity by considering only cash and cash equivalents, declined from 1.27 in December 2020 to 0.29 in December 2023. However, there was a notable increase to 0.90 in December 2024, suggesting an enhancement in the company's ability to meet immediate obligations with available cash reserves.

Overall, the liquidity ratios of CVR Energy Inc demonstrate varying levels of short-term solvency throughout the period under review, indicating fluctuations in the company's ability to meet its current financial obligations. Investors and stakeholders may need to closely monitor these ratios to assess the company's liquidity position and financial health.

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Additional liquidity measure

The cash conversion cycle for CVR Energy Inc has been decreasing steadily over the past five years. From 22.04 days on December 31, 2020, the cycle reduced to 12.90 days by December 31, 2024. This indicates that the company is managing its working capital more efficiently, as it takes fewer days to convert inventory and receivables into cash. A declining cash conversion cycle suggests improved liquidity and operational efficiency, allowing CVR Energy Inc to optimize its cash flow and potentially invest in growth opportunities. Overall, the trend in the cash conversion cycle reflects positively on the company's financial management strategies.