Chevron Corp (CVX)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 6,781,000 | 8,178,000 | 17,678,000 | 5,640,000 | 5,596,000 |
| Short-term investments | US$ in thousands | 4,000 | 45,000 | 223,000 | 35,000 | 31,000 |
| Total current liabilities | US$ in thousands | 38,558,000 | 32,258,000 | 34,208,000 | 26,791,000 | 22,183,000 |
| Cash ratio | 0.18 | 0.25 | 0.52 | 0.21 | 0.25 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,781,000K
+ $4,000K)
÷ $38,558,000K
= 0.18
The cash ratio for Chevron Corp has shown some fluctuation over the past five years. The ratio stood at 0.25 as of December 31, 2020, declined to 0.21 by December 31, 2021, increased significantly to 0.52 by December 31, 2022, then dropped back to 0.25 by December 31, 2023, and further decreased to 0.18 by December 31, 2024.
A cash ratio below 1 indicates that Chevron Corp may not have enough liquid assets to cover its short-term liabilities. The significant increase in the cash ratio in 2022 suggests improvements in the company's ability to meet its short-term obligations. However, the subsequent decrease in the ratio could indicate a potential strain on liquidity in the later years. It will be crucial for Chevron Corp to manage its cash position effectively to ensure it can meet its financial obligations in the future.
Peer comparison
Dec 31, 2024