Expand Energy Corporation (EXE)

Cash ratio

		Sep 30, 2024	Jun 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 and cash equivalents	US$ in thousands	1,044,000	1,019,000	1,179,000	1,079,000	713,000	903,000	130,000	130,000	74,000	17,000	19,000	905,000	849,000	612,000	340,000	279,000	306,000	82,000	82,000	6,000
Short-term investments	US$ in thousands	199,000	361,000	592,000	637,000	361,000	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	899,000	931,000	1,020,000	1,314,000	1,614,000	1,651,000	1,898,000	2,704,000	4,238,000	4,241,000	4,392,000	2,447,000	2,510,000	1,866,000	1,443,000	3,094,000	3,105,000	2,389,000	2,260,000	2,392,000
Cash ratio		1.38	1.48	1.74	1.31	0.67	0.55	0.07	0.05	0.02	0.00	0.00	0.37	0.34	0.33	0.24	0.09	0.10	0.03	0.04	0.00

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,044,000K + $199,000K) ÷ $899,000K
= 1.38

The cash ratio of Expand Energy Corporation has shown a fluctuating trend over the past few years. As of September 30, 2024, the cash ratio stands at 1.38, indicating that the company had $1.38 in cash and cash equivalents for every dollar of current liabilities. This represents an improvement from the previous quarter and is a strong indication of the company's ability to cover its short-term obligations with its liquid assets.

The sharp increase in the cash ratio from the previous quarter highlights a significant improvement in Expand Energy's liquidity position. This may be attributed to effective cash management strategies or an increase in cash reserves. The cash ratio exceeding 1 suggests that the company has more than enough liquid assets to cover its short-term liabilities, reflecting a healthy financial position.

It is worth noting that the company's cash ratio had been quite low in prior periods, particularly in the first half of 2023, where it was below 1. This could indicate potential liquidity challenges or a need to improve cash management practices during those periods. However, the consistent increase in the cash ratio since then demonstrates a positive trend towards strengthening the company's liquidity position.

Overall, the current cash ratio of 1.38 as of September 30, 2024, suggests that Expand Energy Corporation is in a favorable position to meet its short-term financial obligations using its cash and cash equivalents. This liquidity metric provides insights into the company's ability to navigate unexpected financial challenges and indicates a prudent approach to managing its cash resources.