Chevron Corp (CVX)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	40,911,000	41,128,000	50,343,000	33,738,000	26,078,000
Total current liabilities	US$ in thousands	38,558,000	32,258,000	34,208,000	26,791,000	22,183,000
Current ratio		1.06	1.27	1.47	1.26	1.18

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $40,911,000K ÷ $38,558,000K
= 1.06

The current ratio of Chevron Corp has exhibited fluctuations over the past five years. As of December 31, 2020, the current ratio was 1.18, indicating that the company had $1.18 in current assets for every $1 in current liabilities.

By December 31, 2021, the current ratio improved to 1.26, suggesting an increase in liquidity and the ability to cover short-term obligations more comfortably. This positive trend continued into December 31, 2022, with the current ratio further rising to 1.47, reflecting a stronger financial position.

However, by December 31, 2023, there was a slight decrease in the current ratio to 1.27, which may indicate a potential strain on liquidity compared to the previous year. This trend continued into December 31, 2024, with the current ratio dropping to 1.06, falling below the ideal threshold of 1.2 and potentially signaling a decreased ability to cover short-term liabilities.

Overall, while the current ratio of Chevron Corp has shown variability in recent years, it is essential for stakeholders to monitor closely to assess the company's liquidity position and ability to meet its short-term obligations effectively.