CVR Energy Inc (CVI)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 987,000 | 581,000 | 510,000 | 510,000 | 667,000 |
| Short-term investments | US$ in thousands | — | -99,000 | — | — | 173,000 |
| Receivables | US$ in thousands | 306,000 | 286,000 | 380,000 | 325,000 | 222,000 |
| Total current liabilities | US$ in thousands | 1,098,000 | 1,682,000 | 1,439,000 | 1,156,000 | 659,000 |
| Quick ratio | 1.18 | 0.46 | 0.62 | 0.72 | 1.61 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($987,000K
+ $—K
+ $306,000K)
÷ $1,098,000K
= 1.18
Based on the quick ratio data provided for CVR Energy Inc, it is observed that the company's quick ratio has fluctuated over the years.
As of December 31, 2020, the quick ratio was 1.61, indicating that the company had $1.61 in liquid assets to cover each $1 of current liabilities. This suggests a strong ability to meet its short-term obligations without relying heavily on inventory.
However, by December 31, 2021, the quick ratio decreased to 0.72, signaling a significant decline in liquidity. This may raise concerns about the company's ability to meet its short-term obligations with its current liquid assets.
Further deterioration is evident by December 31, 2022, with the quick ratio dropping to 0.62, suggesting a continued weakening of the company's ability to cover its short-term liabilities.
The trend worsens as of December 31, 2023, with a quick ratio of 0.46, indicating a further strain on the company's liquidity position. A quick ratio below 1 may raise concerns about the company's short-term solvency.
However, there seems to be a slight improvement by December 31, 2024, with the quick ratio rising to 1.18. While this is an improvement from the previous year, the quick ratio still remains below 1, indicating that CVR Energy Inc may still face challenges in meeting its short-term obligations using its current liquid assets.
In conclusion, the fluctuating trend of the quick ratio for CVR Energy Inc raises flags about the company's liquidity position and its ability to comfortably meet its short-term liabilities. It is important for stakeholders to monitor this ratio closely to assess the company's financial health and management of liquidity in the future.
Peer comparison
Dec 31, 2024