APA Corporation (APA)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 625,000 | 64,000 | 160,000 | 102,000 | 87,000 | 95,000 | 142,000 | 154,000 | 245,000 | 268,000 | 282,000 | 234,000 | 302,000 | 377,000 | 1,249,000 | 538,000 | 262,000 | 162,000 | 135,000 | 428,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,955,000 | 2,925,000 | 2,889,000 | 2,152,000 | 2,404,000 | 2,635,000 | 2,630,000 | 2,454,000 | 2,916,000 | 2,984,000 | 2,813,000 | 2,114,000 | 2,117,000 | 1,839,000 | 1,773,000 | 1,338,000 | 1,308,000 | 1,382,000 | 1,710,000 | 2,025,000 |
| Cash ratio | 0.21 | 0.02 | 0.06 | 0.05 | 0.04 | 0.04 | 0.05 | 0.06 | 0.08 | 0.09 | 0.10 | 0.11 | 0.14 | 0.21 | 0.70 | 0.40 | 0.20 | 0.12 | 0.08 | 0.21 |
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 of APA Corporation has shown fluctuations over the past several quarters. The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents.
In March 2020, the cash ratio was 0.21, indicating that APA Corporation had $0.21 in cash for every $1 of current liabilities. However, by June 2020, the cash ratio had decreased to 0.08, suggesting a lower liquidity position.
There was a notable improvement in the cash ratio by March 2021, reaching 0.40, which indicates an improved ability to cover short-term obligations with cash on hand. This positive trend continued through June 2021 and September 2021 with cash ratios of 0.70 and 0.21, respectively.
However, the cash ratio declined to 0.14 by December 2021 and further decreased in subsequent quarters, reaching 0.02 by September 2024. This decline could indicate potential liquidity challenges or a lower proportion of cash relative to current liabilities.
Overall, APA Corporation's cash ratio has displayed variability, with periods of improvement followed by declines. It is essential for the company to ensure sufficient liquidity to meet its short-term obligations and manage cash effectively to support its financial health.
Peer comparison
Dec 31, 2024