ConocoPhillips (COP)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 5,607,000 5,635,000 6,458,000 5,028,000 2,991,000
Short-term investments US$ in thousands 507,000 971,000 2,785,000 1,563,000 4,865,000
Receivables US$ in thousands
Total current liabilities US$ in thousands 12,124,000 10,005,000 12,847,000 12,021,000 5,366,000
Quick ratio 0.50 0.66 0.72 0.55 1.46

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($5,607,000K + $507,000K + $—K) ÷ $12,124,000K
= 0.50

The quick ratio of ConocoPhillips has exhibited some fluctuation over the past five years. In December 2020, the quick ratio was relatively healthy at 1.46, indicating the company had an adequate level of liquid assets to cover its current liabilities. However, there was a significant decline in the quick ratio to 0.55 by December 2021, suggesting a potential liquidity strain as the company's ability to meet short-term obligations diminished.

Subsequently, there was a slight improvement in the quick ratio to 0.72 by December 2022, although it remained below the ideal ratio of 1. This indicates that ConocoPhillips still had a liquidity challenge in the short term. The ratio then decreased again to 0.66 by December 2023, further highlighting the company's ongoing liquidity concerns.

By December 2024, the quick ratio declined further to 0.50, indicating a significant decrease in the company's ability to cover its current liabilities with its liquid assets. This downward trend in the quick ratio over the five-year period suggests ConocoPhillips may be facing liquidity challenges that could potentially impact its short-term financial health and ability to meet its obligations.


See also:

ConocoPhillips Quick Ratio