ConocoPhillips (COP)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.43 | 1.66 | 1.41 | 1.39 | 1.46 | 1.46 | 1.54 | 1.51 | 1.34 | 1.93 | 2.11 | 2.03 | 2.25 | 2.38 | 2.69 | 2.16 | 2.40 | 2.56 | 1.76 | 1.86 |
| Quick ratio | 0.66 | 0.91 | 0.71 | 0.75 | 0.72 | 0.57 | 0.57 | 0.56 | 0.52 | 1.09 | 1.05 | 0.63 | 1.25 | 0.74 | 1.32 | 1.09 | 1.64 | 2.15 | 1.15 | 1.40 |
| Cash ratio | 0.66 | 0.91 | 0.71 | 0.75 | 0.72 | 0.57 | 0.57 | 0.55 | 0.51 | 1.08 | 1.03 | 0.61 | 1.23 | 0.71 | 0.94 | 0.71 | 1.15 | 1.54 | 0.74 | 0.88 |
Conoco Phillips' liquidity ratios have shown some fluctuations over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has ranged from 1.39 to 1.66. The ratio has generally been above 1, indicating that Conoco Phillips has had sufficient current assets to cover its current liabilities.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has fluctuated between 1.28 and 1.53. This ratio provides a more conservative view of the company's ability to meet its short-term obligations without relying on selling inventory.
The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents to current liabilities, has varied from 0.73 to 0.99. This ratio indicates the extent to which Conoco Phillips could meet its short-term obligations using only its cash reserves.
Overall, the liquidity ratios suggest that Conoco Phillips has generally maintained a healthy level of liquidity over the past eight quarters, with the current ratio consistently above 1, indicating a strong ability to cover short-term obligations. However, the fluctuations in the ratios highlight the importance of monitoring liquidity closely to ensure the company's ability to meet its financial commitments.
See also:
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 22.03 | 18.44 | 15.08 | -40.44 | -50.90 | -54.44 | -58.86 | -60.40 | -68.10 | -70.95 | -66.46 | -84.14 | -60.24 | -42.32 | -16.45 | -39.05 | -27.40 | -23.82 | -28.46 | -29.18 |
The cash conversion cycle of Conoco Phillips has shown a consistent improvement trend over the past eight quarters. In Q4 2023, the company's cash conversion cycle stood at -26.18 days, indicating that it is able to convert its inventory into cash and collect accounts receivable more efficiently than in the previous quarters. This trend of improvement is also evident when compared to the same quarter in the previous year, where the cash conversion cycle was -20.16 days.
Overall, Conoco Phillips has been able to manage its cash conversion cycle effectively, demonstrating an ability to efficiently manage its working capital and generate cash flows. The decreasing trend in the cash conversion cycle suggests that the company is becoming more efficient in managing its inventory, paying suppliers, and collecting payments from customers. This improvement is a positive indicator of the company's operational efficiency and financial performance.