Devon Energy Corporation (DVN)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,427,000 | 3,157,000 | 3,891,000 | 4,249,000 | 3,260,000 |
| Total current liabilities | US$ in thousands | 3,309,000 | 2,949,000 | 3,105,000 | 3,087,000 | 1,440,000 |
| Current ratio | 1.04 | 1.07 | 1.25 | 1.38 | 2.26 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,427,000K ÷ $3,309,000K
= 1.04
The current ratio of Devon Energy Corporation has shown a declining trend over the past five years, decreasing from 2.26 in December 2020 to 1.04 in December 2024. This indicates that the company's ability to meet its short-term obligations with its current assets has weakened over the period. A current ratio below 1 suggests that the company may have difficulty in meeting its short-term liabilities with its current assets alone. It is essential for Devon Energy Corporation to closely monitor its liquidity position and consider strategies to improve its current ratio for better financial stability and risk management.
Peer comparison
Dec 31, 2024