Liberty Oilfield Services Inc (LBRT)

Cash ratio

		Dec 31, 2024	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
Cash and cash equivalents	US$ in thousands	19,984	23,012	30,043	23,788	36,784	26,603	31,667	20,900	43,676	24,045	41,476	32,925	19,998	34,705	30,710	69,500	69,000	84,819	124,504	56,531
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	666,523	748,571	743,897	662,365	639,424	793,809	744,230	754,777	649,497	704,857	622,072	623,200	569,247	509,052	491,144	393,549	356,146	166,015	100,952	283,268
Cash ratio		0.03	0.03	0.04	0.04	0.06	0.03	0.04	0.03	0.07	0.03	0.07	0.05	0.04	0.07	0.06	0.18	0.19	0.51	1.23	0.20

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($19,984K + $—K) ÷ $666,523K
= 0.03

The cash ratio of Liberty Oilfield Services Inc has fluctuated over the years based on the provided data. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.

From March 31, 2020, to June 30, 2020, the cash ratio increased significantly from 0.20 to 1.23, pointing to a substantial increase in cash reserves relative to short-term liabilities. However, this level was not sustained, as the ratio declined to 0.06 by June 30, 2021.

Throughout the subsequent periods, the cash ratio fluctuated within a relatively low range, indicating varying levels of cash on hand compared to short-term obligations. The ratio remained below 0.10 from June 30, 2021, to December 31, 2024, demonstrating the company's reliance on sources other than cash to meet short-term liabilities.

Overall, Liberty Oilfield Services Inc's cash ratio has shown a volatile trend, suggesting potential challenges in maintaining adequate cash reserves to cover short-term obligations consistently. This pattern underscores the importance of monitoring liquidity management practices to ensure the company can meet its financial obligations effectively.