EQT Corporation (EQT)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 0.70 | 0.99 | 1.08 | 0.44 | 0.69 |
| Quick ratio | 0.58 | 0.49 | 0.82 | 0.30 | 0.45 |
| Cash ratio | 0.08 | 0.04 | 0.39 | 0.02 | 0.13 |
The liquidity ratios of EQT Corporation display fluctuating trends over the years.
1. Current Ratio:
- For the year 2020, the current ratio stood at 0.69 indicating that EQT had $0.69 in current assets for every $1 of current liabilities. This suggests a potential liquidity concern.
- In 2021, the ratio decreased to 0.44, indicating further deterioration in liquidity.
- However, there was a significant improvement in 2022 with the ratio increasing to 1.08, indicating better short-term liquidity.
- The ratio slightly decreased to 0.99 in 2023 and then dropped to 0.70 in 2024, although it remained above the 2020 and 2021 levels.
2. Quick Ratio:
- The quick ratio for EQT Corporation in 2020 was 0.45, showing that it had $0.45 in quick assets to cover $1 of current liabilities.
- Moreover, the quick ratio declined to 0.30 in 2021, which is a further decrease in liquidity.
- Subsequently, in 2022, there was an improvement as the ratio rose to 0.82, suggesting better ability to cover immediate liabilities with liquid assets.
- The ratio dropped to 0.49 in 2023 but improved slightly to 0.58 in 2024, although it remained lower than the 2022 level.
3. Cash Ratio:
- In 2020, EQT had a cash ratio of 0.13, indicating that only 13% of current liabilities could be covered by cash on hand.
- The ratio decreased significantly to 0.02 in 2021, signifying a severe liquidity crunch.
- However, in 2022, the cash ratio increased to 0.39, suggesting a substantial improvement in the ability to cover short-term obligations with cash.
- The ratio decreased to 0.04 in 2023 and slightly increased to 0.08 in 2024, showing some improvement but remaining relatively low.
Overall, EQT Corporation experienced fluctuations in its liquidity ratios over the years, with varying levels of liquidity concerns. The company saw improvements in liquidity in 2022 but continued to face challenges in maintaining optimal liquidity levels in the subsequent years.
See also:
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -72.45 | 7.47 | -20.98 | 55.86 | 40.34 |
The cash conversion cycle of EQT Corporation has shown varying trends over the years based on the provided data.
On December 31, 2020, EQT had a cash conversion cycle of 40.34 days, indicating that it took the company approximately 40 days to convert its investments in raw materials into cash from sales.
By December 31, 2021, the cash conversion cycle increased to 55.86 days, suggesting a longer period for EQT to convert its investments into cash.
A significant improvement was seen by December 31, 2022, with a negative cash conversion cycle of -20.98 days, implying that EQT was able to convert its investments into cash before actually investing in them, possibly due to efficient inventory management or speedy collection of receivables.
The trend continued with a positive cash conversion cycle of 7.47 days by December 31, 2023, indicating a slight delay in converting investments into cash.
The most notable change occurred by December 31, 2024, with a significantly negative cash conversion cycle of -72.45 days. This implies a very efficient cycle where EQT was able to convert investments into cash even before making them, potentially due to streamlined operations and effective management of the working capital.
Overall, the cash conversion cycle of EQT Corporation has shown fluctuations over the years, with variations in efficiency in converting investments into cash. It is important for the company to monitor and manage this cycle effectively to ensure optimal cash flow and operational performance.