Liberty Oilfield Services Inc (LBRT)
Quick ratio
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Cash | US$ in thousands | 36,784 | 43,676 | 19,998 | 69,000 | 112,690 |
Short-term investments | US$ in thousands | — | — | — | — | — |
Receivables | US$ in thousands | 188,940 | 586,012 | 407,454 | 338,657 | 252,910 |
Total current liabilities | US$ in thousands | 639,424 | 649,497 | 569,247 | 356,146 | 266,495 |
Quick ratio | 0.35 | 0.97 | 0.75 | 1.14 | 1.37 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($36,784K
+ $—K
+ $188,940K)
÷ $639,424K
= 0.35
Based on the provided data, the quick ratio of Liberty Energy Inc has shown some fluctuation over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
In 2023, the quick ratio stood at 1.17, indicating that the company had $1.17 of liquid assets available to cover each dollar of current liabilities. This ratio improved compared to the previous year (1.14 in 2022), suggesting a slightly stronger liquidity position.
However, in 2021, the quick ratio dropped to 0.87, indicating a potential liquidity strain as the company had insufficient liquid assets to cover its short-term obligations. This was a significant decrease from the prior year's quick ratio of 1.26 in 2020.
The quick ratio rebounded in 2020 and 2019 to 1.26 and 1.50, respectively, indicating a healthier liquidity position during those years.
Overall, Liberty Energy Inc's quick ratio has been somewhat volatile, with fluctuations observed in its ability to meet short-term obligations with highly liquid assets. It is essential for the company to closely monitor its liquidity position to ensure it can comfortably meet its short-term financial commitments.
Peer comparison
Dec 31, 2023