Chevron Corp (CVX)

Cash ratio

		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 and cash equivalents	US$ in thousands	8,178,000	5,797,000	9,292,000	15,668,000	17,678,000	15,164,000	12,029,000	11,671,000	5,640,000	5,998,000	7,527,000	7,076,000	5,596,000	6,866,000	6,855,000	8,492,000	0	11,697,000	8,513,000	8,699,000
Short-term investments	US$ in thousands	744,000	141,000	318,000	130,000	851,000	267,000	341,000	33,000	374,000	34,000	34,000	32,000	327,000	28,000	59,000	50,000	349,000	58,000	58,000	56,000
Total current liabilities	US$ in thousands	32,258,000	33,263,000	29,847,000	33,735,000	34,208,000	36,883,000	39,121,000	31,203,000	26,791,000	25,188,000	28,147,000	27,480,000	22,183,000	19,664,000	20,825,000	28,235,000	26,530,000	30,233,000	28,829,000	29,951,000
Cash ratio		0.28	0.18	0.32	0.47	0.54	0.42	0.32	0.38	0.22	0.24	0.27	0.26	0.27	0.35	0.33	0.30	0.01	0.39	0.30	0.29

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($8,178,000K + $744,000K) ÷ $32,258,000K
= 0.28

The cash ratio of Chevron Corp. fluctuated over the past eight quarters, ranging from 0.31 to 0.63. The lowest cash ratio was observed in Q3 2023 at 0.31, indicating that the company had only $0.31 in cash and cash equivalents to cover $1 of current liabilities. This suggests a relatively tight liquidity position in that quarter.

On the other hand, the highest cash ratio of 0.63 was recorded in Q4 2022, reflecting a stronger liquidity position where Chevron had $0.63 in cash and cash equivalents for every $1 of current liabilities. This could signify better ability to meet short-term obligations.

The cash ratio trend shows some variability, with a general decline from Q4 2022 to Q3 2023, followed by a slight increase in Q4 2023. This pattern may indicate fluctuations in the company's cash reserves relative to its current liabilities over the analyzed period.

Overall, a cash ratio below 1 suggests that Chevron Corp. may need to rely on sources other than cash on hand to meet its short-term liabilities. Investors and stakeholders may want to monitor Chevron's cash position closely to assess its ability to manage short-term financial obligations effectively.