Devon Energy Corporation (DVN)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,157,000 | 3,891,000 | 4,249,000 | 3,260,000 | 3,851,000 |
| Total current liabilities | US$ in thousands | 2,949,000 | 3,105,000 | 3,087,000 | 1,440,000 | 1,927,000 |
| Current ratio | 1.07 | 1.25 | 1.38 | 2.26 | 2.00 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,157,000K ÷ $2,949,000K
= 1.07
The current ratio of Devon Energy Corp. has exhibited a declining trend over the past five years, decreasing from 2.00 in 2019 to 1.07 in 2023. A current ratio of 1.07 as of December 31, 2023, indicates that the company may face challenges in meeting its short-term obligations with its current assets alone. However, it is important to note that a current ratio above 1.0 generally suggests that the company has sufficient current assets to cover its current liabilities. Nevertheless, a decreasing trend in the current ratio may raise concerns about liquidity and the company's ability to efficiently manage its short-term financial obligations. Further analysis of the company's liquidity position and overall financial performance may be warranted to better understand the factors driving this trend in the current ratio.
Peer comparison
Dec 31, 2023