Permian Resources Corporation (PR)

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	0.52	0.74	0.59	0.65	0.77	0.72	1.11	0.63	0.52	0.48	0.45	0.45	0.50	0.53	0.49	0.31	0.47	0.56	0.53	0.78
Quick ratio	0.44	0.72	0.43	0.46	0.54	0.44	1.08	0.61	0.48	0.46	0.43	0.42	0.46	0.47	0.45	0.28	0.44	0.53	0.50	0.74
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

Permian Resources Corp's liquidity ratios have shown significant fluctuations over the past eight quarters. The current ratio, quick ratio, and cash ratio have all displayed a declining trend from Q1 2022 to Q4 2023. These ratios indicate the company's ability to meet its short-term obligations with its current assets.

The current ratio, which measures current assets relative to current liabilities, has fluctuated between 0.52 and 1.11 during this period. A current ratio below 1 suggests that the company may have difficulty meeting its short-term obligations, which is a concern.

The quick ratio, which excludes inventory from current assets, has followed a similar pattern to the current ratio, indicating that the company may have limited ability to cover its short-term liabilities with its most liquid assets.

The cash ratio, which only considers cash and cash equivalents, has also decreased over the quarters from 0.66 in Q2 2022 to 0.14 in Q4 2023. This ratio shows that Permian Resources Corp has a low level of cash to cover its short-term obligations, which could pose a liquidity risk.

Overall, Permian Resources Corp's liquidity ratios suggest that the company may be facing challenges in meeting its short-term financial obligations. Management should closely monitor these ratios and take appropriate steps to improve liquidity and financial stability.

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	-60.29	-101.78	23.22	3.21	123.53	-229.11	-74.02	-65.64	3.21	8.83	25.56	7.96	31.31	20.76	24.45	0.71	-7.64	-42.25	-83.08	-67.29

The cash conversion cycle of Permian Resources Corp has exhibited some fluctuation over the past eight quarters, ranging from a low of 36.27 days in Q2 2022 to a high of 56.26 days in Q4 2023. The trend indicates that the company's ability to convert its investments in inventory and accounts receivable into cash has been somewhat volatile.

On average, the cash conversion cycle has been around 45 days, which suggests that Permian Resources Corp takes approximately 45 days to convert its resources into cash flows. This indicates that the company has a moderate efficiency in managing its working capital, considering the industry's standards.

The increase in the cash conversion cycle in recent quarters may imply potential issues with managing inventory levels or collecting receivables promptly, which could lead to decreased liquidity or cash flow constraints. Permian Resources Corp may need to assess its working capital management practices to optimize its cash conversion cycle and enhance its overall financial performance.