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.