Southwestern Energy Company (SWN)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 21,000 | 50,000 | 28,000 | 13,000 | 5,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 680,000 | 1,401,000 | 1,160,000 | 368,000 | 345,000 |
| Total current liabilities | US$ in thousands | 1,729,000 | 3,481,000 | 3,052,000 | 1,012,000 | 848,000 |
| Quick ratio | 0.41 | 0.42 | 0.39 | 0.38 | 0.41 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($21,000K
+ $—K
+ $680,000K)
÷ $1,729,000K
= 0.41
The quick ratio of Southwestern Energy Company has shown some variability over the past five years. The ratio was 0.82 at the end of 2023, indicating that for every dollar of current liabilities, the company had $0.82 of liquid assets available to cover those short-term obligations.
Comparing this to the prior year, the quick ratio has increased significantly from 0.48 at the end of 2022. This improvement suggests that the company has strengthened its ability to meet its short-term obligations without relying heavily on inventory, which may indicate better liquidity management.
However, looking at a longer historical trend, the quick ratio was higher in 2019 and 2020 at 0.80 and 0.66, respectively. This suggests that the company may have been more liquid in those years compared to the most recent period, although the quick ratio in 2023 is still higher than in 2021.
Overall, while the quick ratio for Southwestern Energy Company fluctuates, the recent increase from 2022 to 2023 indicates a positive trend in the company's ability to meet its short-term liabilities with liquid assets. It would be important to monitor this ratio in future periods to assess the company's ongoing liquidity position.
Peer comparison
Dec 31, 2023