CVR Energy Inc (CVI)

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 1.30 1.44 1.28 1.22 1.11 1.08 1.25 1.14 1.18 1.26 1.08 1.61 2.13 2.74 3.41 2.77 2.14 2.25 2.40 1.94
Quick ratio 0.52 0.92 0.82 0.69 0.62 0.61 0.77 0.66 0.72 0.78 0.68 0.94 1.35 1.76 2.04 1.90 1.40 1.48 1.47 1.14
Cash ratio 0.35 0.68 0.58 0.45 0.35 0.40 0.53 0.44 0.44 0.55 0.47 0.71 1.01 1.47 1.64 1.60 1.09 1.17 1.12 0.81

The liquidity ratios of CVR Energy Inc show fluctuations over the past eight quarters. The current ratio, measuring the company's ability to cover short-term liabilities with current assets, has been generally above 1, indicating a healthy liquidity position. However, there was a slight decrease in the current ratio in Q4 2023 compared to the previous quarter, which may suggest a tighter liquidity position.

The quick ratio, which provides a more stringent assessment of liquidity by excluding inventory from current assets, also demonstrates a similar trend with values consistently below 1. This indicates that the company may have difficulty meeting its short-term obligations without relying on inventory liquidation.

The cash ratio, focusing solely on the most liquid assets of the company, reveals a varying level of liquidity. While the cash ratio has generally improved over the quarters, CVR Energy Inc may still face challenges in meeting immediate cash requirements without relying on other assets.

Overall, although CVR Energy Inc has maintained acceptable liquidity ratios, the downward trend in certain quarters, particularly in Q4 2023, may indicate a need for the company to closely monitor its liquidity position and manage its short-term 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 14.68 13.79 13.45 14.84 17.48 14.22 18.44 14.55 20.28 14.79 14.07 16.16 22.04 13.09 12.04 0.58 7.92 9.99 12.97 12.68

The cash conversion cycle of CVR Energy Inc has been relatively stable over the past eight quarters, fluctuating between 13.76 days and 18.72 days. The company's ability to convert its resources into cash within a specific timeframe has shown improvement in the recent quarters, with the cycle reaching as low as 13.76 days in Q2 and Q3 of 2023. This suggests that CVR Energy has been managing its inventory, accounts receivable, and accounts payable efficiently.

Overall, a decreasing trend in the cash conversion cycle indicates that the company is managing its working capital effectively, resulting in quicker cash flow generation. By monitoring this cycle, CVR Energy can gain insights into its operational efficiency and make informed decisions regarding inventory management, credit policies, and vendor payment terms to further optimize its cash conversion process.