PBF Energy Inc (PBF)

Liquidity ratios

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
Current ratio 1.25 1.34 1.42 1.54 1.56 1.58 1.47 1.28 1.26 1.21 1.08 1.25 1.38 1.31 1.40 1.43 1.58 1.69 1.66 1.13
Quick ratio 0.47 0.58 0.68 0.69 0.75 0.79 0.67 0.61 0.70 0.65 0.61 0.64 0.70 0.60 0.66 0.71 0.87 0.89 0.81 0.57
Cash ratio 0.15 0.26 0.32 0.38 0.42 0.43 0.35 0.35 0.42 0.35 0.32 0.28 0.36 0.35 0.39 0.45 0.66 0.66 0.60 0.35

PBF Energy Inc's liquidity ratios indicate its ability to meet short-term obligations. The current ratio has trended downward from 1.66 in June 2020 to 1.25 in March 2022, before slightly recovering to 1.42 in June 2024. This suggests a fluctuating but generally adequate level of current assets to cover current liabilities.

The quick ratio, a more stringent measure of liquidity, has also shown a decreasing trend from 0.81 in June 2020 to 0.68 in June 2024. This indicates that the company may face challenges in meeting immediate obligations using only its most liquid assets.

The cash ratio, which represents the most liquid assets available to cover current liabilities, has shown a similar declining trend from 0.60 in June 2020 to 0.32 in June 2024. This suggests that PBF Energy Inc's cash position relative to its short-term obligations has weakened over time.

Overall, while PBF Energy Inc has maintained current ratios above 1, signaling some ability to meet short-term obligations, the decreasing trend in quick and cash ratios raises concerns about the company's liquidity position. Management should closely monitor and potentially improve the efficiency of its cash and liquid asset management to ensure ongoing liquidity stability.

Additional liquidity measure

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 conversion cycle days 33.11 30.32 32.58 31.22 35.60 34.01 32.79 27.57 27.96 29.72 35.28 36.38 39.32 55.94 54.56 60.26 40.11 33.91 28.07 14.43

The cash conversion cycle of PBF Energy Inc has fluctuated over the period from March 2020 to December 2024.

The cash conversion cycle represents the time it takes for a company to convert its investments in inventory into cash flows from sales. A shorter cash conversion cycle indicates that the company is able to efficiently manage its working capital and turn inventory into cash quickly.

Analyzing the data provided:
- The cash conversion cycle of PBF Energy Inc was relatively low in March 2020, at 14.43 days.
- It then increased and peaked at 60.26 days in March 2021, indicating a potential inefficiency in managing working capital during that period.
- Subsequently, there was a decreasing trend observed in the cash conversion cycle, with fluctuations up to December 2024, where it stood at 33.11 days.

Overall, the trend in the cash conversion cycle of PBF Energy Inc shows fluctuations but generally suggests an improvement in managing working capital efficiency, as the cycle has decreased from its peak in March 2021. However, it is important for the company to continue monitoring and optimizing its cash conversion cycle to ensure efficient operations and management of working capital.