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.
Peer comparison
Dec 31, 2023