Karoon Energy has a Cash Ratio of 0.77. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Karoon Energy's Cash Ratio or its related term are showing as below:
ASX:KAR'
s Cash Ratio Range Over the Past 10 Years
Min: 0.38 Med: 10.9 Max: 49.69
Current: 0.77
During the past 13 years, Karoon Energy's highest Cash Ratio was 49.69. The lowest was 0.38. And the median was 10.90.
ASX:KAR's Cash Ratio is ranked better than 67.84% of 1026
companies
in the Oil & Gas industry
Industry Median: 0.4
vs ASX:KAR: 0.77
Karoon Energy Cash Ratio Historical Data
The historical data trend for Karoon Energy's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Karoon Energy's Cash Ratio
For the Oil & Gas E&P subindustry, Karoon Energy's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Karoon Energy's Cash Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Karoon Energy's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Karoon Energy's Cash Ratio falls into.
Karoon Energy Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Karoon Energy's Cash Ratio for the fiscal year that ended in Jun. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Karoon Energy (ASX:KAR) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Karoon Energy Cash Ratio Related Terms
Thank you for viewing the detailed overview of Karoon Energy's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Karoon produces around 8 million barrels of oil annually from its wholly owned Bauna field in Brazil's offshore Santos basin. The company acquired Bauna from Petrobras in 2020 and has been steadily increasing production via well interventions and new developments. Field life is approaching eight years based on proven and probable 2P reserves of 55 million barrels at end December 2022, though this excludes a further 82 million barrels in 2C contingent resources which which have potential to increase life further. We credit life of approximately 10 years, assuming partial conversion of 2C contingent resources into reserve category with drilling. There are also prospective untested targets within Karoon's permits which could potentially add further reserves in the medium term.
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