Liberty Oilfield Services Inc (LBRT)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 19,984 | 36,784 | 43,676 | 19,998 | 69,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 185,210 | 188,940 | 586,012 | 407,454 | 338,657 |
| Total current liabilities | US$ in thousands | 666,523 | 639,424 | 649,497 | 569,247 | 356,146 |
| Quick ratio | 0.31 | 0.35 | 0.97 | 0.75 | 1.14 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($19,984K
+ $—K
+ $185,210K)
÷ $666,523K
= 0.31
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered healthy, as it indicates the company has enough liquid assets to cover its current liabilities.
Analyzing Liberty Oilfield Services Inc's quick ratio from 2020 to 2024, we observe a fluctuation in its liquidity position. In December 2020, the quick ratio stood at a comfortable 1.14, indicating a strong ability to meet short-term obligations. However, by December 2024, the quick ratio had decreased significantly to 0.31, which may raise concerns about the company's liquidity.
The downward trend in the quick ratio over the years suggests a potential decrease in the company's ability to cover its current liabilities with its most liquid assets. It is essential for Liberty Oilfield Services Inc to closely monitor its liquidity position and take appropriate measures to ensure it can continue to meet its short-term obligations in a sustainable manner.
Peer comparison
Dec 31, 2024