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.