Devon Energy Corporation (DVN)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 811,000 | 853,000 | 1,314,000 | 2,099,000 | 2,047,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,309,000 | 2,949,000 | 3,105,000 | 3,087,000 | 1,440,000 |
| Cash ratio | 0.25 | 0.29 | 0.42 | 0.68 | 1.42 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($811,000K
+ $—K)
÷ $3,309,000K
= 0.25
The cash ratio of Devon Energy Corporation has experienced a declining trend over the years, starting at 1.42 in December 2020 and decreasing to 0.25 by December 2024. This indicates that the company may be holding a decreasing amount of cash relative to its current liabilities, which could potentially impact its short-term liquidity and ability to meet its financial obligations. A decreasing cash ratio could signal potential financial stress or inefficient cash management within the company. It is important for stakeholders and investors to closely monitor this trend and assess the company's cash management strategies to ensure its financial health and stability.
Peer comparison
Dec 31, 2024