Chevron Corp (CVX)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.06 | 1.07 | 1.16 | 1.23 | 1.27 | 0.44 | 0.32 | 0.22 | 1.47 | 1.40 | 1.31 | 1.43 | 1.26 | 1.28 | 1.17 | 1.11 | 1.18 | 1.26 | 1.14 | 1.01 |
| Quick ratio | 0.64 | 0.13 | 0.69 | 0.69 | 0.26 | 0.18 | 0.32 | 0.47 | 0.52 | 0.42 | 0.32 | 0.38 | 0.21 | 0.24 | 0.27 | 0.26 | 0.25 | 0.35 | 0.33 | 0.30 |
| Cash ratio | 0.64 | 0.13 | 0.69 | 0.69 | 0.26 | 0.18 | 0.32 | 0.47 | 0.52 | 0.42 | 0.32 | 0.38 | 0.21 | 0.24 | 0.27 | 0.26 | 0.25 | 0.35 | 0.33 | 0.30 |
Chevron Corp's current ratio has shown variability over the past few years, ranging from a low of 0.22 on March 31, 2023, to a high of 1.47 on December 31, 2022. The current ratio measures the company's ability to meet its short-term obligations with its current assets, with a ratio above 1 indicating a healthy liquidity position.
The quick ratio, which excludes inventory from current assets, provides a more stringent measure of liquidity. Chevron Corp's quick ratio has also fluctuated over the period, with a low of 0.13 on September 30, 2024, and a high of 0.69 on March 31, 2024. Higher quick ratios indicate better short-term liquidity.
The cash ratio, which only considers cash and cash equivalents as current assets, exhibited a similar trend to the quick ratio. Chevron Corp's cash ratio ranged from a low of 0.13 on September 30, 2024, to a high of 0.69 on both March 31, 2024, and June 30, 2024. A higher cash ratio implies a stronger ability to cover short-term liabilities with cash on hand.
Overall, Chevron Corp's liquidity ratios show some volatility but generally indicate the company has maintained a reasonable level of liquidity to meet its short-term obligations. Continued monitoring of these ratios will be important to ensure ongoing financial stability and operational flexibility.
See also:
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 24.27 | 26.08 | 27.75 | 26.80 | 23.02 | 24.37 | 22.71 | 21.10 | 18.37 | 20.99 | 19.87 | 19.44 | 23.12 | 24.05 | 27.66 | 28.47 | 29.60 | 23.50 | 21.17 | 22.78 |
The cash conversion cycle of Chevron Corp has shown some fluctuations over the past few years. From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from a low of 18.37 days to a high of 29.60 days.
The trend indicates some variability in how efficiently Chevron manages its cash flow, with the cycle generally staying under 30 days. A lower number of days is generally favorable as it indicates that Chevron is converting its investments or inventory into cash quickly, reducing the need for working capital and potentially improving liquidity.
In more recent periods, the cash conversion cycle has been relatively stable, ranging between 18.37 and 27.75 days from March 31, 2022, to June 30, 2024. This stability can be considered positive as it suggests that Chevron has been able to manage its working capital efficiently during this time.
Overall, the cash conversion cycle analysis provides insights into how well Chevron is managing its cash flow and working capital, impacting its liquidity and overall financial performance.