ESTENEUTRAL

Current Ratio

0.47x

Higher than 9% of Energy sector peers

Updated 1078h ago

Sector Performance

9th percentile

ESTE

0.47x

Sector Median

0.90x

Sector Avg

0.99x

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Deep Analysis

The current ratio measures a company's ability to pay short-term obligations with its short-term assets; a value of 0.47x means Earthstone has only $0.47 in current assets for every $1.00 of current liabilities.

This places it well below the energy sector median of 0.91x and in the 9th percentile among peers, indicating a much weaker liquidity position than most competitors. No year-over-year, quarter-over-quarter change, or historical trend data is available for this metric, so no direction of improvement or deterioration can be assessed. The combination of a very low current ratio (0.47x) with no trend information points to elevated short-term liquidity risk, which typically raises concerns about the company's ability to meet upcoming debt payments. This metric directly contradicts the overall NEUTRAL verdict, as such a low ratio suggests a higher level of financial strain than a neutral stance would imply.

Frequently Asked Questions

What does the Current Ratio tell investors about ESTE?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

How does ESTE's Current Ratio compare to its sector?

ESTE's Current Ratio of 0.47x compares to a Energy sector median of 0.90x, placing it in the 9th percentile.

Who are ESTE's closest peers by Current Ratio?

The closest Energy peers by Current Ratio include: PXD (0.90x), EPD (0.91x), APA (0.92x), CNQ (0.95x), ENB (0.81x).

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

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ESTE

0.47x

Sector Median

0.90x

Sector Avg

0.99x

How ESTE's Current Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.