Devon Energy Corporation (DVN)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 811,000 | 645,000 | 1,140,000 | 1,126,000 | 853,000 | 654,000 | 372,000 | 761,000 | 1,314,000 | 1,166,000 | 3,300,000 | 2,459,000 | 2,099,000 | 2,144,000 | 1,348,000 | 1,683,000 | 2,047,000 | 1,707,000 | 1,474,000 | 1,527,000 |
| Short-term investments | US$ in thousands | — | 717,282 | — | — | — | -670,329 | -674,325 | — | — | — | — | — | — | 388 | 398 | 402 | — | — | — | — |
| Receivables | US$ in thousands | 2,355,000 | 2,134,000 | 1,874,000 | 1,940,000 | 1,846,000 | 2,115,000 | 1,768,000 | 1,889,000 | 1,962,000 | 2,280,000 | 2,582,000 | 2,219,000 | 1,739,000 | 1,689,000 | 1,343,000 | 1,270,000 | 683,000 | 574,000 | 698,000 | 815,000 |
| Total current liabilities | US$ in thousands | 3,309,000 | 2,906,000 | 3,016,000 | 3,266,000 | 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 |
| Quick ratio | 0.96 | 1.20 | 1.00 | 0.94 | 0.92 | 0.63 | 0.55 | 0.90 | 1.06 | 1.00 | 1.44 | 1.25 | 1.24 | 1.09 | 0.88 | 1.00 | 1.90 | 1.33 | 1.50 | 1.51 |
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 measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities.
In the case of Devon Energy Corporation, the quick ratio has fluctuated over the past few years. It was relatively stable around 1.5 in 2020 before increasing to 1.90 by December 31, 2020. However, there was a significant drop in the quick ratio to 0.88 by June 30, 2021, which may indicate potential liquidity challenges.
The quick ratio continued to fluctuate between 2021 and 2024, with values ranging from 0.55 to 1.44. The ratio dipped below 1 multiple times, indicating a potential strain on liquidity during those periods.
Overall, Devon Energy Corporation's quick ratio has shown variability, with some periods of strength in liquidity and other periods of potential weakness. It is important for investors and stakeholders to closely monitor changes in the quick ratio to assess the company's ability to meet its short-term obligations.
Peer comparison
Dec 31, 2024