ConocoPhillips (COP)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	14,330,000	18,749,000	16,050,000	12,066,000	16,913,000
Total current liabilities	US$ in thousands	10,005,000	12,847,000	12,021,000	5,366,000	7,043,000
Current ratio		1.43	1.46	1.34	2.25	2.40

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $14,330,000K ÷ $10,005,000K
= 1.43

The current ratio measures a company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 indicates that a company has more current assets than current liabilities, which is generally considered favorable.

Looking at Conoco Phillips' current ratio over the past five years, we see a declining trend from 2.40 in 2019 to 1.43 in 2023. This downward trend suggests that the company's ability to cover its short-term obligations with its current assets has weakened over the years.

While the current ratio for Conoco Phillips in 2023 stands at 1.43, which indicates that the company still has more current assets than current liabilities, it has decreased from the previous year's ratio of 1.46. Although a current ratio of 1.43 is relatively healthy, it is important for investors and stakeholders to monitor the trend closely to ensure that the company can continue to meet its short-term obligations in the future.