APA Corporation (APA)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 625,000 | 87,000 | 245,000 | 302,000 | 262,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,955,000 | 2,404,000 | 2,916,000 | 2,117,000 | 1,308,000 |
| Cash ratio | 0.21 | 0.04 | 0.08 | 0.14 | 0.20 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($625,000K
+ $—K)
÷ $2,955,000K
= 0.21
The cash ratio for APA Corporation has shown a declining trend from 0.20 on December 31, 2020, to 0.14 on December 31, 2021, further dropping to 0.08 on December 31, 2022, and then to 0.04 on December 31, 2023. This indicates a decreasing ability of the company to cover its short-term liabilities solely with its cash and cash equivalents. However, there was a significant improvement noted on December 31, 2024, with the cash ratio increasing to 0.21. It is essential for APA Corporation to closely monitor its cash position and ensure it maintains an adequate level of liquidity to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024