Devon Energy Corporation (DVN)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,157,000 | 3,212,000 | 2,605,000 | 3,189,000 | 3,891,000 | 4,009,000 | 6,351,000 | 4,973,000 | 4,249,000 | 4,227,000 | 3,076,000 | 3,467,000 | 3,260,000 | 3,477,000 | 3,378,000 | 4,055,000 | 3,851,000 | 2,846,000 | 5,167,000 | 2,703,000 |
| 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 |
| Current ratio | 1.07 | 0.96 | 0.98 | 1.09 | 1.25 | 1.16 | 1.55 | 1.32 | 1.38 | 1.21 | 1.00 | 1.18 | 2.26 | 2.03 | 2.33 | 2.61 | 2.00 | 1.72 | 1.49 | 1.37 |
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 fluctuated over the past eight quarters, ranging from 0.96 to 1.55. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A current ratio of 1 indicates that the company's current assets are just sufficient to cover its current liabilities.
In the most recent quarter of Q4 2023, the current ratio stood at 1.07, showing a slight improvement compared to the previous quarter. While this suggests that the company had enough current assets to cover its short-term obligations, the ratio was below the industry average of 1.5.
Looking back over the past two years, the current ratio has shown some variability, with a peak of 1.55 in Q2 2022 and a low of 0.96 in Q3 2023. This fluctuation may indicate variations in the company's liquidity position and its ability to manage short-term financial obligations.
Overall, the trend in Devon Energy Corp.'s current ratio suggests some level of inconsistency in its ability to maintain a comfortable cushion of current assets to meet its short-term liabilities, which could be a point of concern for investors and creditors. Further analysis of the company's current asset composition and liabilities management strategies may provide additional insights into its liquidity position.
Peer comparison
Dec 31, 2023