CVR Energy Inc (CVI)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 987,000 | 581,000 | 510,000 | 510,000 | 667,000 |
| Short-term investments | US$ in thousands | — | -99,000 | — | — | 173,000 |
| Total current liabilities | US$ in thousands | 1,098,000 | 1,682,000 | 1,439,000 | 1,156,000 | 659,000 |
| Cash ratio | 0.90 | 0.29 | 0.35 | 0.44 | 1.27 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($987,000K
+ $—K)
÷ $1,098,000K
= 0.90
Based on the provided data for CVR Energy Inc's cash ratio, we observe a fluctuation over the years. The cash ratio is a financial metric that indicates a company's ability to cover short-term liabilities with cash and cash equivalents.
As of December 31, 2020, the cash ratio for CVR Energy Inc stood at 1.27, indicating the company had $1.27 of cash and cash equivalents for every $1 of short-term liabilities. This suggests a healthy liquidity position at the end of 2020.
However, the cash ratio declined significantly to 0.44 by December 31, 2021, which may raise concerns about the company's ability to meet its short-term obligations solely with cash reserves.
The trend continued to decrease in the subsequent years, reaching 0.35 by December 31, 2022, 0.29 by December 31, 2023, and then showing signs of improvement at 0.90 by December 31, 2024. It is worth noting that a cash ratio below 1 indicates that the company may not have enough liquid assets to cover its short-term liabilities.
This fluctuation in the cash ratio over the years suggests potential changes in the company's liquidity position and its ability to manage short-term financial obligations effectively. Further investigation into the company's cash management practices and overall financial health may be necessary to fully assess the implications of these fluctuations.
Peer comparison
Dec 31, 2024