Chevron Corp (CVX)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 8,178,000 | 17,678,000 | 5,640,000 | 5,596,000 | 0 |
| Short-term investments | US$ in thousands | 744,000 | 851,000 | 374,000 | 327,000 | 349,000 |
| Receivables | US$ in thousands | 19,921,000 | 20,456,000 | 18,419,000 | 11,471,000 | 13,325,000 |
| Total current liabilities | US$ in thousands | 32,258,000 | 34,208,000 | 26,791,000 | 22,183,000 | 26,530,000 |
| Quick ratio | 0.89 | 1.14 | 0.91 | 0.78 | 0.52 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($8,178,000K
+ $744,000K
+ $19,921,000K)
÷ $32,258,000K
= 0.89
The quick ratio for Chevron Corp. has fluctuated over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered healthy as it indicates the company has enough liquid assets to cover its current liabilities.
In 2023, Chevron Corp. had a quick ratio of 1.01, which suggests that the company had just enough liquid assets to cover its current liabilities. This is a slight decrease from the previous year's quick ratio of 1.23, indicating a potentially tighter liquidity position.
Looking back further, we see that in 2022, the quick ratio was 1.02, also showing a stable liquidity position. In 2021 and 2020, the quick ratios were 0.92 and 0.85, respectively, indicating lower liquidity levels compared to the more recent years. This could be a concern as it suggests the company may have had difficulties meeting its short-term obligations with its available liquid assets during those years.
Overall, the trend in Chevron Corp.'s quick ratio shows some variability in its liquidity position over the past five years, with the most recent year indicating a relatively stable but borderline satisfactory liquidity level.
Peer comparison
Dec 31, 2023