ConocoPhillips (COP)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 5,635,000 | 6,458,000 | 5,028,000 | 2,991,000 | 5,088,000 |
| Short-term investments | US$ in thousands | 971,000 | 2,785,000 | 1,117,000 | 3,609,000 | 3,028,000 |
| Receivables | US$ in thousands | -3,000 | 11,000 | 125,000 | 116,000 | 3,401,000 |
| Total current liabilities | US$ in thousands | 10,005,000 | 12,847,000 | 12,021,000 | 5,366,000 | 7,043,000 |
| Quick ratio | 0.66 | 0.72 | 0.52 | 1.25 | 1.64 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($5,635,000K
+ $971,000K
+ $-3,000K)
÷ $10,005,000K
= 0.66
The quick ratio of Conoco Phillips has shown some fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its short-term liabilities.
In 2023, the quick ratio decreased to 1.29 from 1.36 in 2022, indicating a slight reduction in liquidity compared to the previous year. In 2021, the quick ratio was 1.23, showing a slight decrease from the ratio of 2.06 in 2020. The significant drop in 2021 suggests a potential liquidity concern or a change in the company's liquidity management strategy.
However, it is worth noting that in 2020 and 2019, the quick ratios were 2.06 and 2.25 respectively, indicating strong liquidity positions in those years. This suggests that Conoco Phillips had more than enough liquid assets to cover its short-term obligations during those periods.
Overall, while the recent decrease in the quick ratio raises some concerns about liquidity, the company has historically maintained a healthy liquidity position. Further analysis of the company's current assets and liabilities would be necessary to fully assess its short-term liquidity risk.
Peer comparison
Dec 31, 2023