ConocoPhillips (COP)
Cash ratio
| 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 and cash equivalents | US$ in thousands | 5,607,000 | 5,221,000 | 4,294,000 | 5,574,000 | 5,635,000 | 8,830,000 | 5,735,000 | 6,974,000 | 6,458,000 | 8,010,000 | 6,909,000 | 6,414,000 | 5,028,000 | 9,833,000 | 6,608,000 | 2,991,000 | 2,991,000 | 2,490,000 | 2,907,000 | 3,908,000 |
| Short-term investments | US$ in thousands | 507,000 | 1,571,000 | 1,723,000 | 487,000 | 971,000 | 616,000 | 1,080,000 | 1,635,000 | 2,785,000 | 2,412,000 | 1,272,000 | 730,000 | 1,563,000 | 2,094,000 | 4,053,000 | 4,865,000 | 4,865,000 | 4,841,000 | 4,956,000 | 4,286,000 |
| Total current liabilities | US$ in thousands | 12,124,000 | 10,765,000 | 10,324,000 | 10,163,000 | 10,005,000 | 10,338,000 | 9,548,000 | 11,553,000 | 12,847,000 | 13,997,000 | 12,216,000 | 11,624,000 | 12,021,000 | 10,449,000 | 8,150,000 | 5,366,000 | 5,366,000 | 4,640,000 | 4,105,000 | 6,075,000 |
| Cash ratio | 0.50 | 0.63 | 0.58 | 0.60 | 0.66 | 0.91 | 0.71 | 0.75 | 0.72 | 0.74 | 0.67 | 0.61 | 0.55 | 1.14 | 1.31 | 1.46 | 1.46 | 1.58 | 1.92 | 1.35 |
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 of ConocoPhillips has exhibited fluctuations over the periods provided. It started at a relatively healthy level of 1.35 in March 2020, showing the company had $1.35 in cash and cash equivalents for every $1 of current liabilities. The ratio increased significantly by June 2020 to 1.92, indicating an improved ability to cover short-term obligations with its cash reserves.
However, the ratio began to decline gradually, reaching 0.55 by December 2021. This decline suggests a potential strain on liquidity and may indicate that the company had insufficient cash to cover its short-term liabilities adequately. The ratio continued to fluctuate around this lower level until December 2024, where it stood at 0.50.
Overall, the decreasing trend in the cash ratio raises concerns about ConocoPhillips' ability to meet its short-term obligations solely based on its cash and cash equivalents. It is essential for investors and stakeholders to monitor this ratio closely to assess the company's liquidity position and financial health accurately.
Peer comparison
Dec 31, 2024