PBF Energy Inc (PBF)
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 | 1.56 | 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 | 1.52 | 1.56 | 1.50 | 1.53 |
| Quick ratio | 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 | 0.66 | 0.61 | 0.50 | 0.49 |
| Cash ratio | 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 | 0.32 | 0.23 | 0.09 | 0.16 |
PBF Energy Inc's liquidity ratios show mixed results over the past eight quarters.
The current ratio, reflecting the company's ability to cover short-term obligations with its current assets, has generally been above 1, indicating that PBF Energy Inc has had a comfortable cushion of current assets to meet its current liabilities. There was a slight fluctuation in the current ratio, peaking at 1.58 in Q3 2023 and dropping to 1.28 in Q1 2023. Overall, the trend in the current ratio suggests a stable liquidity position for the company.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown some variation. While the quick ratio generally remained below 1, indicating potential difficulty in quickly meeting short-term obligations without relying on selling inventory, there was a slight improvement in Q4 2023 compared to the previous quarters.
The cash ratio, which is the most conservative liquidity ratio, focuses solely on the company's ability to cover current liabilities with cash and cash equivalents. PBF Energy Inc's cash ratio has shown improvement over the quarters, indicating a stronger ability to meet short-term obligations using cash resources alone.
Overall, while PBF Energy Inc has maintained a relatively stable current ratio above 1, indicating a healthy liquidity position, the company should continue to monitor and manage its quick and cash ratios to ensure it can meet its short-term obligations efficiently, especially in times of economic uncertainty.
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 | 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 | 35.96 | 37.38 | 41.07 | 40.44 |
The cash conversion cycle of PBF Energy Inc has shown fluctuations over the past eight quarters. The cycle represents the number of days it takes for the company to convert its investments in inventory and other resources into cash from sales.
In Q4 2023, the cash conversion cycle increased to 37.82 days, indicating a slight delay in converting investments into cash compared to the previous quarter. This trend continued from Q3 2023, where the cycle was 35.89 days, which was a slight improvement from Q2 2023 at 34.68 days.
Q1 2023 showed a significant decrease in the cash conversion cycle to 29.08 days, suggesting a more efficient conversion of resources into cash compared to the previous quarters. This trend was also observed in Q4 2022 at 29.19 days, reflecting a similar level of efficiency in cash conversion.
However, in Q3 2022 and Q2 2022, the cash conversion cycle increased to 30.91 days and 36.59 days, respectively, indicating a delayed conversion of resources into cash during those periods. Q1 2022 continued this trend with a cycle of 37.68 days, showing a further delay in the conversion process.
Overall, the trend in the cash conversion cycle of PBF Energy Inc has shown some variability over the past eight quarters, with some periods demonstrating more efficient cash conversion processes and others experiencing delays. It is essential for the company to analyze the reasons behind these fluctuations and work towards optimizing its working capital management to ensure a more consistent and favorable cash conversion cycle in the future.