Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
ConocoPhillips, liquidity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Current ratio | ||||||
| Quick ratio | ||||||
| Cash ratio |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The liquidity position, as indicated by the assessed ratios, demonstrates a generally stable trend with some moderate fluctuations over the five-year period. While all three ratios – current, quick, and cash – suggest adequate short-term solvency, subtle shifts warrant observation. Overall, the company appears capable of meeting its immediate obligations, but a slight weakening in some measures is apparent towards the later years of the period.
- Current Ratio
- The current ratio experienced an initial increase from 1.34 in 2021 to 1.46 in 2022, indicating improved ability to cover short-term liabilities with short-term assets. This was followed by a slight decrease to 1.43 in 2023, and a more noticeable decline to 1.29 in 2024. The ratio stabilizes at 1.30 in 2025. This suggests a potential reduction in the proportion of current assets relative to current liabilities in the latter part of the period, though the ratio remains above 1, generally considered a benchmark for adequate liquidity.
- Quick Ratio
- The quick ratio mirrors the trend observed in the current ratio, increasing from 1.10 in 2021 to 1.27 in 2022. A subsequent decrease to 1.21 in 2023 is followed by a more pronounced decline to 1.06 in 2024, and a stabilization at 1.07 in 2025. This indicates a similar pattern in the company’s ability to meet short-term obligations using its most liquid assets, excluding inventory. The decline suggests a potential decrease in highly liquid assets relative to current liabilities.
- Cash Ratio
- The cash ratio shows an increase from 0.55 in 2021 to 0.72 in 2022, demonstrating improved capacity to cover immediate liabilities with cash and cash equivalents. This is followed by a decrease to 0.66 in 2023, then a more substantial drop to 0.50 in 2024. The ratio experiences a slight recovery to 0.58 in 2025. This suggests fluctuations in the company’s holdings of cash and cash equivalents relative to its current liabilities, with a noticeable reduction in the proportion of immediate liquid assets towards the end of the period.
In summary, the observed trends suggest a moderate weakening in liquidity measures from 2022 through 2024, followed by a degree of stabilization in 2025. While the ratios generally remain within acceptable ranges, the declines warrant continued monitoring to ensure the company maintains sufficient short-term solvency.
Current Ratio
ConocoPhillips, current ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Current ratio1 | ||||||
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Chevron Corp. | ||||||
| Exxon Mobil Corp. | ||||||
| Current Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Current Ratio, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The current ratio exhibited fluctuations over the five-year period. Initially, the ratio increased before stabilizing and then experiencing a slight decline.
- Current Ratio Trend
- The current ratio began at 1.34 in 2021, increasing to 1.46 in 2022. It remained relatively stable in 2023 at 1.43, before decreasing to 1.29 in 2024 and slightly recovering to 1.30 in 2025.
The movement in the current ratio appears to be influenced by both current assets and current liabilities. While current assets experienced an initial increase from 2021 to 2022, they subsequently decreased in 2023. Current liabilities followed a similar pattern, increasing in 2022 and then decreasing in 2023, but then increased again in 2024 before stabilizing in 2025.
- Relationship between Assets and Liabilities
- The increase in the current ratio from 2021 to 2022 coincided with increases in both current assets and current liabilities, though the growth in assets was more pronounced. The subsequent stabilization and decline in the ratio from 2023 to 2024 suggest a relative increase in current liabilities compared to current assets.
The current ratio remained above 1.0 throughout the period, indicating the company possesses more current assets than current liabilities. However, the recent trend suggests a potential weakening in the short-term liquidity position, warranting further investigation into the composition of current assets and the nature of current liabilities.
- Liquidity Position
- Despite fluctuations, the company consistently maintained a current ratio above one, suggesting an ability to cover short-term obligations with current assets. The slight decrease in the ratio towards the end of the period indicates a need to monitor the balance between current assets and liabilities to ensure continued short-term solvency.
Quick Ratio
ConocoPhillips, quick ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | ||||||
| Short-term investments | ||||||
| Accounts and notes receivable, net of allowance | ||||||
| Investment in Cenovus Energy | ||||||
| Total quick assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Quick ratio1 | ||||||
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Chevron Corp. | ||||||
| Exxon Mobil Corp. | ||||||
| Quick Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Quick Ratio, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The quick ratio exhibited fluctuating performance over the five-year period. Initially, the ratio increased before stabilizing and then experiencing a slight decline. Total quick assets and current liabilities both influenced these changes, though not always in direct correlation.
- Quick Ratio Trend
- The quick ratio began at 1.10 in 2021, increasing to a peak of 1.27 in 2022. A modest decrease to 1.21 was observed in 2023. Subsequently, the ratio declined further to 1.06 in 2024, followed by a slight recovery to 1.07 in 2025. This suggests a generally stable, but slightly weakening, ability to meet short-term obligations with highly liquid assets.
- Quick Assets
- Total quick assets increased from US$13,261 million in 2021 to US$16,331 million in 2022, contributing to the initial rise in the quick ratio. A significant decrease to US$12,080 million occurred in 2023. Values remained relatively stable between 2023 and 2025, fluctuating between US$12,080 million and US$12,809 million.
- Current Liabilities
- Current liabilities increased from US$12,021 million in 2021 to US$12,847 million in 2022. A substantial decrease to US$10,005 million was noted in 2023, which, combined with the decrease in quick assets, moderated the increase in the quick ratio. Current liabilities then rose again to US$12,124 million in 2024 before decreasing slightly to US$11,972 million in 2025.
The interplay between quick assets and current liabilities demonstrates that while quick assets experienced a notable increase in 2022, the subsequent decrease in 2023, coupled with a rise in current liabilities in 2024, contributed to the observed decline in the quick ratio. The stabilization in 2025 suggests a potential leveling off of these opposing forces.
Cash Ratio
ConocoPhillips, cash ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | ||||||
| Short-term investments | ||||||
| Investment in Cenovus Energy | ||||||
| Total cash assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Cash ratio1 | ||||||
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Chevron Corp. | ||||||
| Exxon Mobil Corp. | ||||||
| Cash Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Cash Ratio, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The cash ratio exhibited fluctuations over the five-year period. Initially, the ratio increased before declining and stabilizing. Total cash assets and current liabilities both influenced these changes.
- Cash Ratio Trend
- The cash ratio began at 0.55 in 2021, increasing to a peak of 0.72 in 2022. A subsequent decrease was observed in 2023, with the ratio falling to 0.66. This downward trend continued into 2024, reaching 0.50, before a slight recovery to 0.58 in 2025.
- Total Cash Assets
- Total cash assets increased significantly from US$6,591 million in 2021 to US$9,243 million in 2022. However, these assets decreased in subsequent years, reaching US$6,606 million in 2023 and US$6,114 million in 2024. A modest increase to US$6,981 million was noted in 2025, but remained below the 2022 level.
- Current Liabilities
- Current liabilities showed an initial increase from US$12,021 million in 2021 to US$12,847 million in 2022. These liabilities then decreased substantially to US$10,005 million in 2023. A rise to US$12,124 million occurred in 2024, followed by a slight decrease to US$11,972 million in 2025.
The increase in the cash ratio in 2022 coincided with a substantial rise in total cash assets and a moderate increase in current liabilities. The subsequent decline in the ratio from 2023 to 2024 was driven by decreasing cash assets and increasing current liabilities. The stabilization in 2025 suggests a balancing of these two factors.