Permian Resources Corporation (PR)

Cash ratio

		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 and cash equivalents	US$ in thousands	479,343	272,026	48,449	13,279	73,864	211,703	18,280	25,593	59,545	45,514	201,092	50,624	9,380	4,985	4,702	10,936	5,800	5,177	7,214	3,841
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	1,327,340	1,271,960	1,167,630	1,112,030	1,241,550	760,011	722,724	681,998	605,569	615,766	316,101	299,727	167,899	228,536	220,879	194,191	131,868	120,705	157,861	239,045
Cash ratio		0.36	0.21	0.04	0.01	0.06	0.28	0.03	0.04	0.10	0.07	0.64	0.17	0.06	0.02	0.02	0.06	0.04	0.04	0.05	0.02

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($479,343K + $—K) ÷ $1,327,340K
= 0.36

Permian Resources Corporation's cash ratio has experienced fluctuations over the past few years, ranging from as low as 0.01 to as high as 0.64. The cash ratio represents the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates that the company has a larger proportion of cash relative to its current liabilities, which is generally seen as a positive sign of liquidity and financial stability.

Analyzing the trend of Permian Resources Corporation's cash ratio, we observe that there have been periods of both improvement and decline. For example, the cash ratio increased significantly from 0.02 in March 2022 to 0.64 in June 2022, indicating a substantial increase in cash reserves relative to short-term liabilities during that period. However, the cash ratio decreased in the following quarters before showing some recovery.

While a cash ratio of 0.36 as of December 31, 2024, suggests that Permian Resources Corporation had a relatively strong liquidity position at that point in time, it is important to consider other factors such as the company's overall financial health, industry benchmarks, and future cash flow projections to gain a more comprehensive understanding of its liquidity management.