Diamondback Energy Inc (FANG)
Cash ratio
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 582,000 | 827,000 | 18,000 | 46,000 | 157,000 | 27,000 | 43,000 | 149,000 | 654,000 | 457,000 | 344,000 | 121,000 | 104,000 | 92,000 | 51,000 | 149,000 | 123,000 | 100,000 | 326,000 | 149,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 119,000 | — | — | — | — | 509,000 | 518,000 | 525,000 | 533,000 | 532,000 | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,108,000 | 2,141,000 | 2,123,000 | 1,886,000 | 1,716,000 | 1,678,000 | 1,640,000 | 1,872,000 | 1,438,000 | 1,996,000 | 1,972,000 | 1,868,000 | 1,236,000 | 1,229,000 | 1,061,000 | 1,330,000 | 1,263,000 | 1,181,000 | 1,180,000 | 1,112,000 |
| Cash ratio | 0.28 | 0.39 | 0.01 | 0.02 | 0.16 | 0.02 | 0.03 | 0.08 | 0.45 | 0.48 | 0.44 | 0.35 | 0.52 | 0.51 | 0.05 | 0.11 | 0.10 | 0.08 | 0.28 | 0.13 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($582,000K
+ $—K)
÷ $2,108,000K
= 0.28
The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources.
Looking at Diamondback Energy Inc's cash ratio over the past eight quarters, we observe fluctuations in the metric. In Q4 2023, the cash ratio stood at 0.34, indicating that for every dollar of short-term liabilities, the company had $0.34 in cash and cash equivalents available.
Comparing this to the previous quarter, Q3 2023, where the ratio was 0.40, we see a slight decrease in the cash ratio, suggesting a lower level of liquidity in the most recent quarter.
The highest cash ratio in the provided data was in Q3 2022 at 0.11, while the lowest was in Q2 2023 at 0.02. These variations highlight potential fluctuations in Diamondback Energy Inc's liquidity position over the analyzed period.
Overall, the cash ratio trend for Diamondback Energy Inc indicates some volatility in its ability to cover short-term obligations with available cash. This variability may prompt further investigation into the company's cash management practices to ensure sufficient liquidity to meet current liabilities.
Peer comparison
Dec 31, 2023