Chevron Corp (CVX)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 41,128,000 | 50,343,000 | 33,738,000 | 26,078,000 | 28,329,000 |
| Total current liabilities | US$ in thousands | 32,258,000 | 34,208,000 | 26,791,000 | 22,183,000 | 26,530,000 |
| Current ratio | 1.27 | 1.47 | 1.26 | 1.18 | 1.07 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $41,128,000K ÷ $32,258,000K
= 1.27
The current ratio of Chevron Corp. has shown fluctuations over the past five years, with values ranging from 1.07 to 1.47. The current ratio measures the ability of a company to cover its short-term liabilities with its short-term assets. A current ratio above 1 indicates that Chevron has more current assets than current liabilities, which is generally considered favorable.
In 2019, the current ratio was 1.07, indicating that Chevron had just enough current assets to cover its current liabilities. However, in the following years, the current ratio improved, reaching a peak of 1.47 in 2022, signaling an increased ability to meet short-term obligations.
In 2023, the current ratio decreased to 1.27, suggesting a slight decline in Chevron's short-term liquidity compared to the previous year. While a current ratio above 1 is typically positive, a decreasing trend could indicate potential liquidity challenges if not managed effectively. It would be essential for Chevron to monitor its current assets and liabilities closely to ensure sufficient liquidity to meet its short-term obligations.
Peer comparison
Dec 31, 2023