Marathon Petroleum Corp (MPC)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 5,443,000 | 8,625,000 | 5,291,000 | 415,000 | 1,393,000 |
| Short-term investments | US$ in thousands | 4,781,000 | 3,145,000 | 5,548,000 | 5,422,000 | 134,000 |
| Total current liabilities | US$ in thousands | 20,150,000 | 20,020,000 | 17,898,000 | 15,663,000 | 16,948,000 |
| Cash ratio | 0.51 | 0.59 | 0.61 | 0.37 | 0.09 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($5,443,000K
+ $4,781,000K)
÷ $20,150,000K
= 0.51
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher ratio indicates a stronger ability to meet short-term obligations. Marathon Petroleum Corp's cash ratio has shown improvement over the years, increasing from 0.13 in 2019 to 0.56 in 2023.
In 2020, the cash ratio was relatively low at 0.20, indicating a weaker liquidity position compared to subsequent years. However, the company's liquidity improved significantly in 2021 and 2022, with cash ratios of 0.64 and 0.65, respectively.
Although the ratio slightly declined in 2023 to 0.56, Marathon Petroleum Corp still maintains a healthy cash position relative to its short-term obligations. Overall, the trend suggests an enhanced liquidity position in recent years, which is favorable for the company's financial stability and ability to meet its short-term financial commitments.
Peer comparison
Dec 31, 2023