CVR Energy Inc (CVI)

Liquidity ratios

	Dec 31, 2024	Sep 30, 2024	Mar 31, 2024	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
Current ratio	1.66	1.33	1.49	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
Quick ratio	1.18	0.77	0.86	0.52	0.92	0.82	0.69	0.62	0.61	0.77	0.66	0.72	0.78	0.68	1.17	1.61	2.02	2.55	2.24	1.40
Cash ratio	0.90	0.51	0.62	0.35	0.68	0.58	0.45	0.35	0.40	0.53	0.44	0.44	0.55	0.47	0.95	1.27	1.73	2.15	1.93	1.09

The liquidity ratios of CVR Energy Inc show a mixed trend over the years.

1. Current Ratio: The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, decreased from 2.14 in December 2019 to 1.66 in December 2024. Although there were fluctuations in between, the ratio generally declined over the period, indicating potential challenges in meeting short-term obligations.

2. Quick Ratio: The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also witnessed a decline from 1.40 in December 2019 to 1.18 in December 2024. This downward trend suggests that CVR Energy may have faced difficulties in meeting immediate obligations without relying on inventory.

3. Cash Ratio: The cash ratio, which indicates the company's ability to cover its current liabilities with cash and cash equivalents, fluctuated between 1.09 and 0.90 from December 2019 to December 2024. While there were ups and downs, the ratio remained relatively stable overall, indicating CVR Energy's consistent ability to cover short-term obligations with its cash holdings.

In conclusion, CVR Energy's liquidity ratios show a decreasing trend in its ability to cover short-term obligations with current assets or quick assets over the years. However, the company maintained a stable cash ratio, reflecting a consistent ability to meet immediate liabilities with cash reserves. This suggests a potential need for the company to improve its current asset management strategies to enhance liquidity in the future.

Additional liquidity measure

		Dec 31, 2024	Sep 30, 2024	Mar 31, 2024	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
Cash conversion cycle	days	12.49	13.80	12.82	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

The cash conversion cycle of CVR Energy Inc fluctuated over the years, reflecting its ability to efficiently convert its resources into cash. In December 2019, the company had a cash conversion cycle of 7.92 days, indicating a relatively swift cycle. However, by March 2020, the cycle decreased significantly to 0.58 days, suggesting potential improvements in managing its cash and working capital.

Subsequently, the cash conversion cycle increased to 22.04 days by December 2020, indicating a delay in converting its resources into cash during that period. CVR Energy Inc managed to reduce this cycle to 14.07 days by June 2021, demonstrating efforts to enhance its liquidity position and operational efficiency.

The trend continued with fluctuations in the cash conversion cycle over the subsequent periods, varying between 12.82 days in March 2024 and 18.44 days in June 2022. Overall, the company's cash conversion cycle showed some volatility over the years, reflecting changes in its operational and financial strategies. An effective management of the cash conversion cycle is crucial for CVR Energy Inc to ensure optimal cash flow and liquidity management in its operations.