HF Sinclair Corp (DINO)

Based on the provided data, HF Sinclair Corp's liquidity ratios have shown some fluctuations over the years.

1. Current Ratio:
- The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, decreased from 2.41 in 2020 to 1.82 in 2021 before improving to 2.08 in 2022 and further to 2.22 in 2023. However, it dropped significantly to 1.65 in 2024.
- Overall, the current ratio indicates that the company may have had more difficulty covering its short-term obligations with its current assets in 2021 and 2024 compared to the other years.

2. Quick Ratio:
- The quick ratio, a more conservative measure of liquidity that excludes inventory from current assets, saw a sharp decline from 1.00 in 2020 to 0.11 in 2021. It then improved to 0.51 in 2022 but dropped slightly to 0.49 in 2023 and further to 0.26 in 2024.
- The trend in the quick ratio suggests potential liquidity challenges in 2021 and 2024, where the company's ability to meet short-term liabilities without relying on inventory was particularly strained.

3. Cash Ratio:
- The cash ratio, the most stringent measure of liquidity that considers only cash and cash equivalents, followed a similar pattern to the quick ratio. It decreased from 1.00 in 2020 to 0.11 in 2021, improved to 0.51 in 2022, and then declined to 0.49 in 2023 and further to 0.26 in 2024.
- The decreasing trend in the cash ratio highlights potential cash liquidity challenges in 2021 and 2024, where the company had relatively less cash on hand to cover immediate obligations.

In conclusion, the liquidity ratios of HF Sinclair Corp indicate varying levels of liquidity over the years, with notable challenges in 2021 and 2024. It is important for the company to closely monitor and manage its liquidity position to ensure it can meet its short-term obligations effectively.

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Additional liquidity measure

The cash conversion cycle (CCC) of HF Sinclair Corp has shown fluctuations over the years. Starting at 43.89 days on December 31, 2020, it increased to 49.15 days by December 31, 2021. However, there was a significant improvement in efficiency by December 31, 2022, with the CCC decreasing to 37.38 days. The trend continued to improve in 2023, with the CCC decreasing further to 39.76 days. By the end of 2024, HF Sinclair Corp managed its working capital more effectively, leading to a reduced CCC of 35.89 days. Overall, the company has shown efforts to streamline its cash conversion cycle, indicating better management of receivables, inventory, and payables, which is a positive sign for its liquidity and operational efficiency.