ConocoPhillips (COP)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 5,635,000 | 6,458,000 | 5,028,000 | 2,991,000 | 5,088,000 |
| Short-term investments | US$ in thousands | 971,000 | 2,785,000 | 1,117,000 | 3,609,000 | 3,028,000 |
| Total current liabilities | US$ in thousands | 10,005,000 | 12,847,000 | 12,021,000 | 5,366,000 | 7,043,000 |
| Cash ratio | 0.66 | 0.72 | 0.51 | 1.23 | 1.15 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($5,635,000K
+ $971,000K)
÷ $10,005,000K
= 0.66
The cash ratio of Conoco Phillips has shown some fluctuations over the past five years. The ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.
In 2023, the cash ratio decreased to 0.75 from 0.81 in 2022, indicating a slight decrease in the company's ability to cover its short-term liabilities with available cash. This may imply a potential liquidity concern compared to the previous year.
In 2021, the cash ratio was 0.68, the lowest among the five years analyzed. This suggests that the company had a lower ability to cover its short-term obligations with cash and cash equivalents, which could pose a liquidity risk.
On the other hand, in 2020 and 2019, the cash ratio was higher at 1.55 and 1.77, respectively, indicating a stronger ability to meet short-term obligations with available cash.
Overall, the trend in Conoco Phillips' cash ratio shows some variability, with fluctuations that may signify changes in the company's liquidity position over the years. It is important for stakeholders to closely monitor this ratio to assess the company's ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023