Liberty Oilfield Services Inc (LBRT)

Based on the data provided, Liberty Energy Inc's liquidity ratios have shown fluctuations over the past five years. The current ratio, which measures the company's ability to meet its short-term obligations with its current assets, has shown a decreasing trend from 1.83 in 2019 to 1.49 in 2023. This indicates that the company may have slightly less liquidity to cover its current liabilities compared to previous years.

The quick ratio, which provides a more stringent liquidity measure by excluding inventory from current assets, has followed a similar trend, declining from 1.50 in 2019 to 1.17 in 2023. This suggests that the company's ability to meet its short-term obligations with its most liquid assets has also weakened over the years.

The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, has fluctuated over the years but generally decreased from 0.70 in 2019 to 0.55 in 2023. This indicates that Liberty Energy Inc may have a lower proportion of cash relative to its current liabilities.

Overall, the declining trend in all three liquidity ratios (current, quick, and cash) suggests that Liberty Energy Inc's liquidity position may have weakened over the past five years. It is important for the company to closely monitor its liquidity ratios and implement strategies to ensure it has sufficient liquid assets to meet its short-term obligations.

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Additional liquidity measure

The cash conversion cycle of Liberty Energy Inc has fluctuated over the past five years. In 2023, the cash conversion cycle decreased to 21.06 days from 23.07 days in 2022, indicating that the company managed its cash flow more efficiently. Compared to 2021, where the cash conversion cycle was 19.08 days, there was a slight increase in the cycle in 2023.

However, the significant improvement in the cash conversion cycle in 2023 compared to 2020 is noteworthy, as the cycle decreased from 60.57 days to 21.06 days. This suggests that the company has become more effective in managing its working capital and converting its inventory and receivables into cash efficiently.

Furthermore, in comparison to 2019 when the cash conversion cycle was 32.71 days, the company has made significant progress in optimizing its cash conversion cycle by lowering it to 21.06 days in 2023. Overall, these improvements indicate that Liberty Energy Inc has been more successful in managing its operational efficiency and liquidity over the years.