Liberty Oilfield Services Inc (LBRT)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	36,784	43,676	19,998	69,000	112,690
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	639,424	649,497	569,247	356,146	266,495
Cash ratio		0.06	0.07	0.04	0.19	0.42

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($36,784K + $—K) ÷ $639,424K
= 0.06

The cash ratio measures a company's ability to cover its short-term liabilities using its most liquid assets, specifically cash and cash equivalents. A higher cash ratio indicates a greater ability to cover short-term obligations.

Analyzing Liberty Energy Inc's cash ratio over the past five years, we observe fluctuations in the company's liquidity position. In 2023, the cash ratio stood at 0.55, showing a slight improvement from 0.51 in 2022. This suggests that Liberty Energy had $0.55 in cash and cash equivalents for every dollar of current liabilities in 2023.

Comparing these figures to previous years, we note that the cash ratio was lower in 2021 at 0.35, possibly indicating a weaker liquidity position that year. However, the company strengthened its liquidity position in 2022 and further improved it in 2023.

In 2020 and 2019, Liberty Energy had higher cash ratios of 0.57 and 0.70, respectively, implying a better ability to cover short-term obligations in those years compared to the most recent period.

Overall, while Liberty Energy's cash ratio has shown some variability over the past five years, the company's recent increase in the cash ratio suggests an enhanced liquidity position in 2023 compared to the previous year. Additional analysis and comparison with industry benchmarks would provide further insights into the company's liquidity management.