ConocoPhillips (COP)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.29 | 1.30 | 1.33 | 1.35 | 1.43 | 1.66 | 1.41 | 1.39 | 1.46 | 1.46 | 1.54 | 1.51 | 1.34 | 1.93 | 2.11 | 2.25 | 2.25 | 2.38 | 2.69 | 2.16 |
| Quick 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 |
| 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 |
ConocoPhillips' liquidity ratios have shown some fluctuations over the reporting periods. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, peaked at 2.69 in June 2020 and has since declined to 1.29 by December 2024. This trend indicates a decreasing ability to meet short-term liabilities with current assets.
Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, followed a similar downward trend, falling from 1.92 in June 2020 to 0.50 by December 2024. This further signifies a reduction in the company's ability to cover immediate liabilities without relying on inventory.
The cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents, mirrored the trends in the current and quick ratios, declining from 1.92 in June 2020 to 0.50 by December 2024. This suggests a decreasing ability to meet short-term obligations with the most liquid assets on hand.
Overall, ConocoPhillips' liquidity ratios have deteriorated over the years, indicating potential challenges in meeting short-term financial obligations. Investors and stakeholders may want to closely monitor these ratios to assess the company's liquidity position and ability to navigate unforeseen financial distress.
See also:
Additional liquidity measure
| 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 conversion cycle | days | 17.18 | 14.23 | 13.68 | 13.98 | 13.43 | 11.91 | 10.27 | 9.53 | 9.18 | 9.79 | 11.26 | 12.81 | 14.20 | 14.43 | 17.78 | 17.88 | 20.38 | 20.55 | 18.14 | 12.04 |
The cash conversion cycle of ConocoPhillips has shown fluctuations over the periods analyzed. From March 31, 2020, to December 31, 2024, the company's cash conversion cycle ranged from a low of 9.18 days to a high of 20.55 days.
A declining trend is observed in the cash conversion cycle from September 30, 2021, reaching a low point on December 31, 2022, at 9.18 days. This suggests that ConocoPhillips became more efficient in managing its working capital during this period.
However, the cycle increased slightly by March 31, 2023, and experienced fluctuations thereafter, reaching 17.18 days by December 31, 2024. This increase indicates a potential delay in converting the company's investments in inventory back into cash or slower collection of accounts receivable.
Overall, ConocoPhillips should continue to monitor and manage its cash conversion cycle effectively to ensure efficient working capital management and maximize its operational performance.