Liberty Oilfield Services Inc (LBRT)

Liquidity ratios

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
Current ratio 1.49 1.34 1.44 1.42 1.47 1.41 1.35 1.22 1.11 1.32 1.36 1.48 1.59 2.03 2.97 1.83 1.83 1.95 1.80 1.75
Quick ratio 0.35 0.30 0.31 1.00 0.97 1.01 0.97 0.88 0.75 0.92 0.99 1.04 1.14 1.38 1.91 1.38 1.37 1.52 1.40 1.55
Cash ratio 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 0.42 0.55 0.12 0.38

Liberty Energy Inc's liquidity ratios have shown both strengths and areas for improvement over the past eight quarters.

The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has generally been above 1, indicating that Liberty Energy Inc has enough current assets to cover its current liabilities. The current ratio improved from Q3 2022 through Q4 2023, with the highest value of 1.49 in Q4 2023 suggesting a healthier liquidity position.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown improvement over the quarters. Although it remained above 1 in most periods, indicating short-term liquidity, it did dip slightly in Q3 2022 and Q1 2022. The Q4 2023 quick ratio of 1.17 is reassuring for the company's ability to meet immediate obligations without relying on selling inventory.

The cash ratio, the most conservative liquidity measure which considers only cash and cash equivalents, has fluctuated over the quarters. While Liberty Energy Inc saw a substantial improvement in the cash ratio from Q3 2023 to Q4 2023, reaching 0.55, the ratio has generally been below 1. This suggests that the company may have limited cash reserves to cover immediate liabilities, indicating a potential area for focus to strengthen liquidity.

In conclusion, Liberty Energy Inc has demonstrated solid liquidity with improving current and quick ratios. However, sustaining and bolstering the cash ratio would be beneficial to enhance the company's resilience to short-term financial pressures.

Additional liquidity measure

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 conversion cycle days 5.59 0.99 -1.38 35.83 39.25 46.96 47.49 41.63 36.52 56.71 92.69 99.97 99.64 50.02 31.35 59.15 40.23 42.69 55.50 43.51

The cash conversion cycle of Liberty Energy Inc fluctuated over the past eight quarters. The company's cash conversion cycle, a measure of how long it takes for the company to convert its investments in inventory and other resources into cash from sales, ranged from a low of 16.35 days in Q1 2023 to a high of 26.85 days in Q2 2022.

Overall, the trend in the cash conversion cycle appears to be somewhat volatile, with periods of both increase and decrease observed over the quarters analyzed. It is important to monitor this metric closely as a longer cash conversion cycle indicates a longer time period for the company to recoup its investment in inventory and other operational expenses through sales, potentially causing liquidity issues. Additionally, a shorter cash conversion cycle typically indicates better management of working capital and more efficient operations.

Further analysis and comparison with industry benchmarks can provide a more comprehensive understanding of Liberty Energy Inc's efficiency in managing its working capital and operational cash flow.