ConocoPhillips (COP)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 1.29 | 1.43 | 1.46 | 1.34 | 2.25 |
| Quick ratio | 0.50 | 0.66 | 0.72 | 0.55 | 1.46 |
| Cash ratio | 0.50 | 0.66 | 0.72 | 0.55 | 1.46 |
ConocoPhillips' liquidity ratios have shown a mixed trend over the last five years. The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has decreased from 2.25 in 2020 to 1.29 in 2024. This indicates a potential decline in the company's short-term liquidity position.
Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also decreased from 1.46 in 2020 to 0.50 in 2024. This suggests that ConocoPhillips may have a lower ability to meet its short-term obligations without relying on inventory for immediate cash.
The cash ratio, which indicates the company's ability to cover current liabilities with cash and cash equivalents alone, has followed a similar declining trend from 1.46 in 2020 to 0.50 in 2024. This decrease could indicate a reduced capacity to settle short-term obligations with readily available cash resources.
Overall, the decreasing trend in ConocoPhillips' liquidity ratios over the years highlights potential concerns regarding the company's short-term financial flexibility. Investors and stakeholders may need to monitor these ratios closely to ensure the company can meet its short-term obligations efficiently.
See also:
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 17.21 | 17.20 | 9.18 | 14.20 | 20.38 |
The cash conversion cycle of ConocoPhillips has shown fluctuations over the past five years. As of December 31, 2020, the company's cash conversion cycle was 20.38 days, which decreased to 14.20 days by December 31, 2021. Subsequently, the cycle further decreased to 9.18 days by December 31, 2022. However, there was an increase in the cycle to 17.20 days by December 31, 2023, followed by a marginal increase to 17.21 days by December 31, 2024. Overall, the trend indicates that ConocoPhillips has been able to efficiently manage its cash conversion cycle, with periods of improvement and slight setbacks in cash conversion efficiency over the years.