Devon Energy Corporation (DVN)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 853,000 | 1,314,000 | 2,099,000 | 2,047,000 | 1,464,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,949,000 | 3,105,000 | 3,087,000 | 1,440,000 | 1,927,000 |
| Cash ratio | 0.29 | 0.42 | 0.68 | 1.42 | 0.76 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($853,000K
+ $—K)
÷ $2,949,000K
= 0.29
The cash ratio of Devon Energy Corp. has shown a declining trend over the past five years. The ratio has decreased from 1.73 in 2020 to 0.45 in 2023. This indicates that the company's ability to cover its short-term liabilities with its available cash and cash equivalents has decreased significantly over the period. A lower cash ratio may suggest that Devon Energy Corp. is becoming less liquid and potentially facing challenges in meeting its immediate financial obligations. Further analysis of the company's liquidity position and cash management strategies may be warranted to understand the reasons behind this declining trend in the cash ratio.
Peer comparison
Dec 31, 2023