EQT Corp. (NYSE:EQT)

Current Ratio

The current ratio demonstrates notable fluctuations over the observed quarters. Initially, the ratio starts at 1.07 in March 2018, then declines to its lowest point of 0.40 in March 2022, indicating a weakening short-term liquidity position. There are intermittent recoveries, such as in December 2019 when it peaks at 1.30, followed by a gradual downward trend through 2021 and into 2022. Overall, the trend reflects periods of improved liquidity interrupted by sustained declines toward the latter periods.

Quick Ratio

The quick ratio, which excludes inventory from current assets, generally follows a downward trajectory reflecting a tightening liquidity stance excluding less liquid assets. Starting at 0.80 in March 2018, it reaches a low of 0.16 in September 2021 and June 2022. Despite minor rises, such as an uptick to 0.41 in March 2021 and a modest recovery near 0.31 in the final periods, the quick ratio remains consistently below 0.5 from mid-2018 onward. This indicates limited ability to cover immediate liabilities without relying on inventory or other less liquid assets.

Cash Ratio

The cash ratio remains very low throughout the entire period, often approaching zero, with only brief instances of small positive values mostly between 0.01 and 0.02. Notably, the cash ratio starts at 0.19 in March 2018, then nearly drops to zero, signaling minimal availability of cash or cash equivalents to meet current liabilities. Occasional minor improvements occur in mid-2021, but these are short-lived and the ratio returns to near-zero levels in subsequent quarters. This persistent low cash ratio points to a limited immediate cash buffer.

The analysis of the quarterly financial data reveals notable fluctuations in both current assets and current liabilities over the observed periods, impacting the liquidity position as indicated by the current ratio.

Current Assets

Current assets exhibit variability across quarters, generally trending upward with some fluctuations. Starting from approximately 1.19 billion at the end of Q1 2018, assets increase significantly by mid-2018, then dip slightly towards Q3 2018. Following this, there is a rise toward the end of 2018, a marginal decline in early 2019, and periods of growth and contraction thereafter. Notably, there is a sharp increase in mid to late 2021, reaching above 3.34 billion by Q3 2021, followed by continued growth into 2022, peaking around 4.09 billion at Q2 2022 before a slight reduction towards Q3 2022.

Current Liabilities

Current liabilities display greater volatility and a generally increasing trend over the given timeframe. Beginning at approximately 1.11 billion in Q1 2018, liabilities spike dramatically in mid-2018 to over 2.35 billion and continue to rise through late 2018. Variations occur during 2019 with a gradual decline into early 2020, but again liabilities surge notably mid to late 2021, peaking at over 7.22 billion in Q3 2021. Although some reduction occurs afterwards, liabilities remain substantially elevated relative to earlier periods, stabilizing around 6.6 to 7.6 billion by Q3 2022.

Current Ratio

The current ratio reflects the relationship between current assets and liabilities and serves as an indicator of short-term liquidity. The ratio fluctuates considerably, largely remaining below 1.0 in most quarters, which signals that current liabilities consistently exceed current assets. Initial values hover slightly above 1.0 in early 2018 but drop sharply by mid-2018 and remain below 1.0 through most of 2018 and 2019, with only brief marginal improvements. The ratio notably deteriorates during 2021, reaching its lowest levels around 0.45 in late 2021, indicating heightened liquidity risk. A modest recovery is observed in 2022, with the ratio rising to approximately 0.57 to 0.59, but still materially below the 1.0 threshold, suggesting persistent challenges in covering short-term obligations.

Overall, the data indicates that while current assets have generally increased over time, current liabilities have risen even more sharply, resulting in a deteriorated liquidity position. The persistent current ratio below 1.0 signals potential stress in meeting short-term liabilities, underscoring a cautious outlook regarding the company's liquidity management during the examined periods.

The analysis of the quarterly financial data reveals several noteworthy trends in liquidity and short-term financial position over the observed period.

Total Quick Assets

The total quick assets display a fluctuating pattern with notable variability throughout the quarters. Initial values near 0.88 billion US dollars in early 2018 increase significantly to about 1.47 billion by mid-2018 before decreasing again and showing some volatility through 2019. From 2020 onwards, a general upward trend is observable, particularly notable from early 2021 through mid-2022, peaking at over 2.1 billion US dollars. This suggests an overall increase in liquid assets available in more recent periods, though with intermittent declines.

Current Liabilities

Current liabilities exhibit substantial fluctuation, with values ranging widely across the quarters. Beginning around 1.1 billion US dollars in early 2018, there is a peak at approximately 2.64 billion in late 2018, followed by a decrease and stabilization around 1.3 to 1.5 billion through 2019. From 2020 forward, there is a marked increase reaching a maximum exceeding 7.2 billion in mid-2021, before subsequently decreasing yet remaining elevated relative to earlier years, fluctuating between 5.0 and 7.6 billion towards late 2022. This indicates considerably increased short-term obligations in the most recent periods.

Quick Ratio

The quick ratio consistently remains below 1.0 throughout the analyzed time frame, presenting a picture of liquidity constraints relative to current liabilities. The ratio generally trends downward from 0.8 in early 2018 through to lows around 0.16 during late 2021 and mid-2022, indicating a weakening short-term liquidity position. There are intermittent modest recoveries, such as an increase near 0.33 in late 2020 and 0.31 in late 2022, but the overall ratio suggests that quick assets cover only a fraction of current liabilities, pointing to potential liquidity risk.

In summary, the financial data shows increased accumulation of quick assets over recent years but accompanied by disproportionately larger increases in current liabilities. This imbalance results in a declining quick ratio, highlighting deteriorating short-term liquidity conditions. Close attention to managing current liabilities and maintaining adequate liquid resources would be critical to ensure financial stability going forward.

Total cash assets

Total cash assets exhibit significant volatility over the observed periods. The highest point occurs on June 30, 2018, with a substantial amount of 698,032 thousand US dollars, followed by a sharp decline to 4,855 thousand US dollars by September 30, 2018. Subsequently, cash levels remain relatively low and fluctuate moderately through 2019 and 2020, generally staying below 20,000 thousand US dollars.

A sharp increase is observed on June 30, 2021, reaching 330,770 thousand US dollars, indicating a strong inflow or buildup of cash reserves. This is followed by a reduction towards the end of 2021 but maintains higher levels than most of the previous years. Through 2022, cash assets generally trend upward, ending at 87,541 thousand US dollars in September 2022, suggesting improved liquidity or cash management compared to the earlier periods in the dataset.

Current liabilities

Current liabilities display a generally increasing trend with notable fluctuations. Starting at 1,108,676 thousand US dollars on March 31, 2018, liabilities peak significantly on June 30, 2021, at 3,679,201 thousand US dollars and again on March 31, 2022, reaching 7,605,287 thousand US dollars.

The data reveals periods of rapid growth in liabilities, particularly from early 2021 through mid-2022, implying potential increased operational costs, debt acquisition, or other short-term financial obligations. While liabilities slightly decrease by the third quarter of 2022, they remain at an elevated level compared to earlier years.

Cash ratio

The cash ratio remains very low throughout the entire timeframe, consistently below 0.1 and frequently near zero. The highest cash ratio is 0.3 on June 30, 2018, coinciding with the peak in total cash assets during the same period.

For the majority of the periods, the ratio hovers between 0.00 and 0.02, indicating minimal cash relative to current liabilities, which points to very limited immediate liquidity coverage. There is no period where the cash ratio approaches a satisfactory level generally considered safe or strong, suggesting that the entity’s ability to cover short-term obligations solely with cash is weak or constrained over the entire timeframe.