ConocoPhillips (COP)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 5,607,000 | 5,635,000 | 6,458,000 | 5,028,000 | 2,991,000 |
| Short-term investments | US$ in thousands | 507,000 | 971,000 | 2,785,000 | 1,563,000 | 4,865,000 |
| Total current liabilities | US$ in thousands | 12,124,000 | 10,005,000 | 12,847,000 | 12,021,000 | 5,366,000 |
| Cash ratio | 0.50 | 0.66 | 0.72 | 0.55 | 1.46 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($5,607,000K
+ $507,000K)
÷ $12,124,000K
= 0.50
The cash ratio for ConocoPhillips has shown a declining trend over the past five years, decreasing from 1.46 in 2020 to 0.50 in 2024. This indicates that the company's ability to cover its current liabilities with its cash and cash equivalents has weakened over the period. An ideal cash ratio is typically considered to be 1 or higher, suggesting that ConocoPhillips may be relying more on sources other than cash to meet its short-term obligations. It is important for the company to closely monitor its liquidity position and consider strategies to improve its cash reserves to ensure financial stability in the future.
Peer comparison
Dec 31, 2024