Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
ConocoPhillips, liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The data reveals a general declining trend in the liquidity ratios over the period analyzed, indicating a gradual reduction in short-term financial strength and cash availability.
- Current Ratio
- This ratio starts relatively high at 2.16 in March 2020 and peaks at 2.69 in June 2020, suggesting a comfortable level of current assets relative to current liabilities early in the period. However, from 2021 onward, the current ratio declines steadily, reaching values slightly above 1.3 by the end of 2024 and early 2025. This decline points to a decreasing margin of safety against short-term obligations.
- Quick Ratio
- Following a similar pattern to the current ratio, the quick ratio shows an initial increase up to 2.29 in mid-2020, indicating strong liquidity in terms of easily liquidatable assets excluding inventory. Thereafter, a consistent downward trajectory is observed with a reduction to near 1.0 by the end of 2024 and early 2025. This implies a tightening liquidity condition without reliance on inventory.
- Cash Ratio
- The cash ratio exhibits the most pronounced decline among the liquidity indicators. Initially at 1.35 in March 2020 and peaking at 1.92 in June 2020, it then decreases sharply to levels below 0.7 from 2021 onwards. Toward the end of the period, it approaches or dips below 0.6, indicating considerably reduced cash reserves relative to current liabilities. This suggests a shift towards a more leveraged or less liquid cash stance.
Overall, the liquidity ratios collectively suggest an erosion of short-term liquidity over the four-year span. The initial strong liquidity conditions in early 2020 deteriorated gradually, possibly reflecting changes in operational cash flows, working capital management, or strategic financial policies. The continued decrease in the cash ratio, in particular, highlights increasingly constrained cash availability relative to current obligations, meriting close monitoring to ensure ongoing financial flexibility.
Current Ratio
ConocoPhillips, current ratio calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current assets | ||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Current ratio1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The quarterly financial data presents notable trends in current assets, current liabilities, and the resulting current ratio over the observed periods.
- Current Assets
- Current assets display a fluctuating yet overall upward trend from March 31, 2020, through March 31, 2025. Beginning at approximately $13.1 billion, current assets decreased slightly in the middle of 2020 before steadily increasing to a peak near $20.2 billion by September 2021. Following this peak, a decline occurs toward early 2023, dropping to approximately $13.5 billion. Subsequently, current assets recover to around $17.2 billion by September 2023 but then generally decrease again to roughly $13.7 billion by mid-2024. The data concludes with a rise to nearly $17.0 billion by March 2025, indicating some volatility but an overall positive trajectory across the multi-year period.
- Current Liabilities
- Current liabilities exhibit a consistent upward trend throughout the entire period from $6.1 billion in early 2020 to $13.3 billion by March 2025. The increase is more gradual in the early periods, accelerating notably from mid-2020, with periodic increments sustaining through the latest reports. There are no indications of significant decreases, reflecting continued growth in short-term financial obligations.
- Current Ratio
- The current ratio trend reflects the interaction between current assets and liabilities, starting relatively high at 2.16 in March 2020 and improving to a peak of 2.69 by June 2020. After this peak, the ratio declines generally, falling below the ideal threshold of 2.0 as liabilities grow faster than current assets. The most significant drop appears near the end of 2021 where the ratio reaches 1.34, indicating tightening liquidity. From 2022 onward, the current ratio stabilizes in a narrow range around 1.3 to 1.6, showing a relatively restrained liquidity position, with a minor upward shift to 1.66 in the third quarter of 2023 before declining again. The final recorded ratio is 1.27, suggesting a balanced but conservative short-term financial buffer relative to liabilities.
In summary, the data reveals that while current assets have experienced periods of growth and contraction, current liabilities have steadily increased, impacting the current ratio by compressing liquidity ratios below previous higher levels. The decreasing current ratio suggests the company faces increasing short-term obligations relative to its assets, which could imply a need for more cautious liquidity management moving forward.
Quick Ratio
ConocoPhillips, quick ratio calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | ||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals distinct trends in liquidity and current obligations over the reported periods.
- Total Quick Assets
- The total quick assets demonstrate an overall upward trend from March 31, 2020, to March 31, 2025, despite some fluctuations. Starting at approximately $10,458 million, the quick assets increased notably to peak values above $17,000 million during 2021 and 2022. After reaching these highs, there is a marked decrease, with values dropping back to around $11,346 million in June 2023. Subsequently, quick assets show signs of recovery, increasing again to approximately $13,635 million by March 31, 2025. These patterns suggest periods of asset accumulation followed by drawdowns and partial recovery.
- Current Liabilities
- Current liabilities exhibit a steady and consistent rise over the entire time frame. From a starting point of about $6,075 million in March 2020, liabilities increased progressively, surpassing $13,000 million by March 2025. The growth in current liabilities is relatively smooth, without significant reversals, indicating increased short-term obligations and possibly greater reliance on current financing or operational payables over time.
- Quick Ratio
- The quick ratio, a measure of liquidity, displays a declining trend throughout the period analyzed. Initially high at 1.72 in March 2020 and peaking at 2.29 in June 2020, it decreases over time, falling below the critical threshold of 1.0 towards the end of the time frame. By March 2025, the quick ratio is approximately 1.02, reflecting a contraction in liquid assets relative to current liabilities. This decline in quick ratio despite the increased quick assets is primarily driven by the faster growth in current liabilities compared to liquid assets, indicating a weakening liquidity position over time.
In summary, while total quick assets increased overall, current liabilities grew at a faster pace, resulting in a declining quick ratio. This suggests a gradual reduction in short-term liquidity cushion, warranting attention to liquidity management and funding strategies to maintain financial stability.
Cash Ratio
ConocoPhillips, cash ratio calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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. | ||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets experienced fluctuations throughout the observed periods. Initially, there was a decline from approximately 8,194 million USD in March 2020 to 7,331 million USD in September 2020, followed by a rebound reaching a peak of 11,927 million USD in September 2021. Subsequently, cash assets decreased sharply to 6,591 million USD by December 2021. From 2022 onwards, the trend shows moderate volatility with values oscillating between around 6,000 and 10,422 million USD. Toward the most recent periods, the total cash assets tend to settle in a lower range between 6,000 and 7,000 million USD, reflecting an overall reduction compared to the peak in late 2021.
- Current Liabilities
- Current liabilities display an upward trend over the entire timeline. Starting from 6,075 million USD in March 2020, liabilities decreased to around 4,105 million USD in June 2020, but then rose steadily. By December 2021, current liabilities reached 12,021 million USD and continued increasing, peaking at 13,329 million USD in March 2025. This steady increase indicates a growing obligation level, outpacing the fluctuations observed in cash assets.
- Cash Ratio
- The cash ratio declined notably over the periods analyzed. Initially high at 1.35 in March 2020, it peaked at 1.92 in June 2020, indicating strong liquidity. However, from that point forward, it exhibited a consistent downward trend. By December 2021, the ratio had decreased to 0.55 and hovered around values below 1.0 for the subsequent periods. Most recently, towards March 2025, the ratio fell further to approximately 0.54, suggesting diminished liquidity relative to current liabilities and a progressively weaker buffer of cash assets against short-term obligations.
- Overall Insights
- The financial data reveals that while the company maintained relatively high cash assets with intermittent peaks, the rise in current liabilities has been more persistent and robust. This divergence resulted in a significant reduction of the cash ratio over time, indicating that liquidity has tightened. The company appears to face increasing short-term obligations that are not matched by proportionate increases in readily available cash, warranting attention to liquidity management and working capital optimization.