Permian Resources Corporation (PR)

Cash ratio

		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 and cash equivalents	US$ in thousands	73,290	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	10,223	10,933	28,444	89,482
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	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	254,466	287,488	301,583	274,435
Cash ratio		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	0.04	0.04	0.09	0.33

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 shown fluctuations over the past eight quarters. In Q4 2023, the cash ratio decreased significantly to 0.14, indicating that the company's cash and cash equivalents are relatively low compared to its current liabilities. This decline may raise concerns about the company's liquidity and ability to meet its short-term obligations using its available cash resources.

The trend observed over the past quarters also shows variability in the cash ratio, with Q3 2022 having the highest value of 0.66 and Q4 2022 having a similar value at 0.30. These higher ratios suggest that the company had a more comfortable position in terms of cash availability relative to its current liabilities during those periods.

Overall, the decreasing trend in the cash ratio from the previous highs suggests that Permian Resources Corp may need to closely monitor its cash management practices to ensure it maintains an adequate level of liquidity to meet its short-term financial obligations. A low cash ratio can indicate a potential risk of liquidity problems, and the company may need to consider strategies to improve its cash position in the future.