Southwestern Energy Company (SWN)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,415,000 | 1,664,000 | 1,413,000 | 671,000 | 679,000 |
| Total current liabilities | US$ in thousands | 1,729,000 | 3,481,000 | 3,052,000 | 1,012,000 | 848,000 |
| Current ratio | 0.82 | 0.48 | 0.46 | 0.66 | 0.80 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,415,000K ÷ $1,729,000K
= 0.82
The current ratio of Southwestern Energy Company has fluctuated over the past five years, ranging from 0.46 to 0.82. The current ratio measures a company's ability to cover its short-term liabilities with its short-term assets. A higher current ratio indicates a stronger ability to meet short-term obligations.
In 2023, the current ratio improved to 0.82 from 0.48 in 2022 and 0.46 in 2021. This signifies an enhancement in the company's short-term liquidity position, showing it has more current assets available to cover its current liabilities. However, the current ratio in 2023 is still lower compared to 2019 when it was 0.80.
It is important for investors and stakeholders to closely monitor the current ratio of Southwestern Energy Company as it reflects the company's short-term financial health and its ability to effectively manage its liquidity position. Continued improvement in the current ratio over time would be a positive indicator of the company's financial strength.
Peer comparison
Dec 31, 2023