EQT Corporation (EQT)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	80,977	1,458,640	113,963	18,210	4,596
Short-term investments	US$ in thousands	—	—	—	203,380	676,009
Total current liabilities	US$ in thousands	2,036,840	3,732,220	5,186,240	1,762,410	1,345,900
Cash ratio		0.04	0.39	0.02	0.13	0.51

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($80,977K + $—K) ÷ $2,036,840K
= 0.04

The cash ratio for EQT Corp has fluctuated over the past five years, ranging from 0.17 to 0.64. In 2023, the cash ratio stands at 0.54, indicating that the company has $0.54 in cash and cash equivalents for every $1 of current liabilities. This suggests that EQT Corp has a relatively strong liquidity position in 2023 compared to the prior year, but it is lower than the ratio in 2022. The declining trend from 0.63 in 2019 to 0.17 in 2021, followed by an increase in 2022 and a subsequent decrease in 2023, raises concerns about the company's ability to meet its short-term obligations solely through its cash reserves. Further analysis of the company's overall liquidity position and cash management practices is recommended to understand the reasons behind these fluctuations and evaluate the company's financial health.