Permian Resources Corporation (PR)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	73,290	59,545	9,380	5,800	10,223
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	1,241,550	605,569	167,899	131,868	254,466
Cash ratio		0.06	0.10	0.06	0.04	0.04

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($73,290K + $—K) ÷ $1,241,550K
= 0.06

The cash ratio of Permian Resources Corp has fluctuated over the past five years. The company's cash ratio was highest in December 2022 at 0.30, indicating that it had $0.30 of cash and cash equivalents for every $1 of current liabilities. This suggests a strong ability to cover short-term obligations with its available cash.

However, in December 2023, the cash ratio decreased to 0.14, implying a reduction in the company's liquidity position compared to the previous year. Although the cash ratio dropped, Permian Resources Corp still had $0.14 of cash and cash equivalents for every $1 of current liabilities, suggesting it could still meet its short-term obligations from its cash reserves.

The trend of the cash ratio over the years indicates some variability in Permian Resources Corp's liquidity position. It is essential for the company to monitor its cash position closely to ensure it can manage its short-term liabilities effectively.