Devon Energy Corporation (DVN)
Cash ratio
| 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 and cash equivalents | US$ in thousands | 811,000 | 645,000 | 1,140,000 | 1,126,000 | 853,000 | 654,000 | 372,000 | 761,000 | 1,314,000 | 1,166,000 | 3,300,000 | 2,459,000 | 2,099,000 | 2,144,000 | 1,348,000 | 1,683,000 | 2,047,000 | 1,707,000 | 1,474,000 | 1,527,000 |
| Short-term investments | US$ in thousands | — | 717,282 | — | — | — | -670,329 | -674,325 | — | — | — | — | — | — | 388 | 398 | 402 | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,309,000 | 2,906,000 | 3,016,000 | 3,266,000 | 2,949,000 | 3,330,000 | 2,669,000 | 2,931,000 | 3,105,000 | 3,460,000 | 4,094,000 | 3,754,000 | 3,087,000 | 3,505,000 | 3,072,000 | 2,945,000 | 1,440,000 | 1,709,000 | 1,452,000 | 1,554,000 |
| Cash ratio | 0.25 | 0.47 | 0.38 | 0.34 | 0.29 | -0.00 | -0.11 | 0.26 | 0.42 | 0.34 | 0.81 | 0.66 | 0.68 | 0.61 | 0.44 | 0.57 | 1.42 | 1.00 | 1.02 | 0.98 |
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 displayed some fluctuations over the period from March 31, 2020, to December 31, 2024. The cash ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, ranged from a low of -0.11 on June 30, 2023, to a high of 1.42 on December 31, 2020.
The trend indicates some variability in Devon Energy's liquidity position, with the ratio mostly hovering below 1 in the recent periods. A cash ratio below 1 suggests that the company may have difficulty meeting its short-term obligations exclusively with its available cash and cash equivalents. However, it is important to consider the nature of the industry and the company's overall financial health when interpreting this ratio.
It is worth noting that the cash ratio improved significantly in 2020, potentially indicating a more substantial cash position to cover immediate financial obligations. Still, the subsequent decrease in the ratio in the following periods, especially the negative values in mid-2023, suggests that there may have been challenges in maintaining sufficient cash reserves to meet short-term liabilities during those specific quarters.
Overall, fluctuations in the cash ratio of Devon Energy Corporation highlight the company's changing liquidity position and its ability to manage short-term financial obligations through available cash resources over the analyzed period.
Peer comparison
Dec 31, 2024