APA Corporation (APA)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,404,000 | 2,462,000 | 2,708,000 | 2,380,000 | 1,846,000 |
| Total current liabilities | US$ in thousands | 2,955,000 | 2,404,000 | 2,916,000 | 2,117,000 | 1,308,000 |
| Current ratio | 1.15 | 1.02 | 0.93 | 1.12 | 1.41 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,404,000K ÷ $2,955,000K
= 1.15
APA Corporation's current ratio has shown a declining trend over the past five years, starting at 1.41 in December 31, 2020, and decreasing to 1.12 by December 31, 2021, further dropping to 0.93 by December 31, 2022. However, there was a slight improvement to 1.02 by December 31, 2023, and a further increase to 1.15 by December 31, 2024.
A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally seen as a positive sign of the company's liquidity. Even though there was a fluctuation in the current ratio over the years, the recent improvement may suggest that APA Corporation has been able to better manage its short-term obligations and maintain liquidity in the more recent years. However, it is important for the company to continue monitoring and managing its current assets and liabilities effectively to ensure its financial health and stability in the future.
Peer comparison
Dec 31, 2024