APA Corporation (APA)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.15 | 1.24 | 1.01 | 1.16 | 1.02 | 1.06 | 0.99 | 1.11 | 0.93 | 1.05 | 1.10 | 1.23 | 1.12 | 1.19 | 1.66 | 1.75 | 1.41 | 1.24 | 0.97 | 0.94 |
| Quick 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 |
| 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 |
APA Corporation's liquidity ratios show varying trends over the reporting periods.
The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has fluctuated between 0.93 and 1.75. While there have been periods of improvement, the ratio dipped below 1 in some quarters, signaling potential liquidity concerns.
The quick ratio, also known as the acid-test ratio, provides a more stringent assessment by excluding inventory from current assets. APA Corporation's quick ratio has generally been low, ranging from 0.02 to 0.70. This indicates a limited ability to meet short-term obligations without relying on inventory.
The cash ratio, which is the most conservative liquidity metric, measures the company's ability to cover current liabilities with its cash and cash equivalents. Like the quick ratio, APA Corporation's cash ratio has been relatively low, with values ranging from 0.02 to 0.70. This suggests that the company may have difficulty meeting immediate obligations relying solely on cash reserves.
Overall, APA Corporation's liquidity ratios reflect mixed performance in managing short-term obligations. The company may need to focus on improving its liquidity position to ensure financial stability and meet its financial commitments effectively.
See also:
Additional liquidity measure
| 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 conversion cycle | days | 27.99 | 36.68 | 36.43 | 41.82 | 40.81 | 39.02 | 40.69 | 37.90 | 32.34 | 36.88 | 37.30 | 44.35 | 38.84 | 42.02 | 45.83 | 50.48 | 50.87 | 48.40 | 41.97 | 37.24 |
The cash conversion cycle of APA Corporation has exhibited fluctuations over the period under review. Initially, there was a gradual increase in the cash conversion cycle from March 31, 2020, to December 31, 2021, peaking at 50.87 days. Subsequently, there was a notable improvement in the cycle from March 31, 2022, to December 31, 2024, with a decrease to as low as 27.99 days.
Overall, a decreasing trend in the cash conversion cycle signifies that APA Corporation has been able to manage its working capital more efficiently and convert its investments in inventory and accounts receivable into cash more quickly. This improvement in the cash conversion cycle may indicate enhanced liquidity and operational efficiency within the organization.