APA Corporation (APA)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 84,000 | 185,000 | 279,000 | 262,000 | 247,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,231,000 | 2,697,000 | 2,231,000 | 1,308,000 | 1,855,000 |
| Cash ratio | 0.04 | 0.07 | 0.13 | 0.20 | 0.13 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($84,000K
+ $—K)
÷ $2,231,000K
= 0.04
The cash ratio measures a company's ability to cover its short-term liabilities with cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of funding.
APA Corporation's cash ratio has fluctuated over the past five years, ranging from 0.17 in 2023 to 0.34 in 2020. The decreasing trend from 2020 to 2023 suggests a potential decline in the company's liquidity position. A cash ratio of 0.17 in 2023 indicates that for every dollar of current liabilities, APA Corporation has $0.17 in cash and cash equivalents available.
While a lower cash ratio could indicate a potential liquidity challenge, it is essential to consider the industry norms and the company's overall financial health before drawing conclusions. Further analysis of APA Corporation's cash management practices, operating cash flows, and working capital management may provide insights into the factors affecting its cash ratio performance.
Peer comparison
Dec 31, 2023