Devon Energy Corporation (DVN)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 811,000 | 853,000 | 1,314,000 | 2,099,000 | 2,047,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 2,355,000 | 1,846,000 | 1,962,000 | 1,739,000 | 683,000 |
| Total current liabilities | US$ in thousands | 3,309,000 | 2,949,000 | 3,105,000 | 3,087,000 | 1,440,000 |
| Quick ratio | 0.96 | 0.92 | 1.06 | 1.24 | 1.90 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($811,000K
+ $—K
+ $2,355,000K)
÷ $3,309,000K
= 0.96
The quick ratio of Devon Energy Corporation has shown a decreasing trend over the past five years, starting at a healthy level of 1.90 in December 31, 2020, but declining to 1.24 in December 31, 2021, and further dropping to 1.06 in December 31, 2022. The ratio continued to decline to 0.92 in December 31, 2023, before slightly increasing to 0.96 in December 31, 2024.
A quick ratio below 1.0 typically indicates that the company may have difficulty meeting its short-term obligations with its most liquid assets alone. Therefore, the decreasing trend in Devon Energy Corporation's quick ratio over the years may raise concerns about its liquidity position and ability to cover its immediate liabilities. It would be advisable for the company to closely monitor its liquidity management and take appropriate measures to improve its quick ratio in order to ensure financial stability and solvency.
Peer comparison
Dec 31, 2024