PBF Energy Inc (PBF)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 536,100 | 1,783,500 | 2,203,600 | 1,341,500 | 1,609,500 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 1,165,000 | 1,362,500 | 1,456,300 | 1,277,600 | 512,900 |
| Total current liabilities | US$ in thousands | 3,626,100 | 4,217,300 | 5,200,700 | 3,759,700 | 2,451,500 |
| Quick ratio | 0.47 | 0.75 | 0.70 | 0.70 | 0.87 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($536,100K
+ $—K
+ $1,165,000K)
÷ $3,626,100K
= 0.47
The quick ratio, also known as the acid-test ratio, is a liquidity ratio that measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that a company may have difficulty meeting its short-term liabilities.
Based on the data provided for PBF Energy Inc, the quick ratio has trended downwards over the years, decreasing from 0.87 on December 31, 2020, to 0.47 on December 31, 2024. This downward trend suggests a potential liquidity concern as the company's ability to cover its short-term liabilities with its quick assets has weakened.
A quick ratio of 0.70 as of December 31, 2021, and December 31, 2022, indicates that PBF Energy Inc may have faced challenges in maintaining sufficient liquid assets to meet its short-term obligations. The slight improvement to 0.75 on December 31, 2023, shows some recovery but still falls below the ideal ratio of 1.
The significant drop to 0.47 by December 31, 2024, raises concerns about the company's liquidity position and its ability to cover immediate financial obligations using its quick assets. This declining trend in the quick ratio should be carefully monitored by investors and stakeholders as it may indicate potential financial strain in meeting short-term liabilities.
Peer comparison
Dec 31, 2024