Devon Energy Corporation (DVN)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	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	1,464,000	1,375,000	3,470,000	1,327,000
Short-term investments	US$ in thousands	—	-670,329	-674,325	—	—	—	—	—	—	388	398	402	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	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	1,927,000	1,658,000	3,467,000	1,968,000
Cash ratio		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	0.76	0.83	1.00	0.67

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 exhibited some fluctuations over the past eight quarters. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.

In Q1 2022, the cash ratio was at its peak at 0.98, signifying a robust liquidity position. However, there was a sharp decrease in Q2 2022 to 0.79. Subsequently, the cash ratio gradually declined to 0.45 in Q4 2023, indicating a potential lower ability to cover short-term liabilities with cash alone.

Overall, the trend suggests some variability in Devon Energy Corp.'s liquidity position, which may warrant further investigation into the company's cash management practices and potential impacts on financial stability.