Devon Energy Corporation (DVN)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 853,000 | 1,314,000 | 2,099,000 | 2,047,000 | 1,464,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 1,846,000 | 1,962,000 | 1,739,000 | 683,000 | 1,013,000 |
| Total current liabilities | US$ in thousands | 2,949,000 | 3,105,000 | 3,087,000 | 1,440,000 | 1,927,000 |
| Quick ratio | 0.92 | 1.06 | 1.24 | 1.90 | 1.29 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($853,000K
+ $—K
+ $1,846,000K)
÷ $2,949,000K
= 0.92
The quick ratio of Devon Energy Corp. has shown a declining trend over the past five years. In 2020, the quick ratio was at its highest level of 2.26, indicating a strong ability to cover current liabilities with highly liquid assets. However, in the subsequent years, the quick ratio decreased steadily to 1.19 in 2022, 1.38 in 2021, and further declined to 0.99 in 2023.
A quick ratio below 1 suggests that Devon Energy Corp. may face difficulties in meeting its short-term obligations with its most liquid assets. This declining trend could indicate potential liquidity challenges or inefficiencies in managing short-term financial obligations.
Further analysis and monitoring of Devon Energy Corp.'s liquidity position and management of current assets and liabilities are recommended to assess the company's ability to maintain adequate liquidity levels in the future.
Peer comparison
Dec 31, 2023