Marathon Petroleum Corp (MPC)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,210,000 | 5,443,000 | 8,625,000 | 5,291,000 | 555,000 |
| Short-term investments | US$ in thousands | 1,933,000 | 4,781,000 | 3,145,000 | 5,548,000 | 5,422,000 |
| Total current liabilities | US$ in thousands | 20,827,000 | 20,150,000 | 20,020,000 | 17,898,000 | 15,663,000 |
| Cash ratio | 0.25 | 0.51 | 0.59 | 0.61 | 0.38 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,210,000K
+ $1,933,000K)
÷ $20,827,000K
= 0.25
The cash ratio of Marathon Petroleum Corp has shown fluctuations over the years, indicating varying levels of liquidity. The ratio increased from 0.38 in December 2020 to 0.61 in December 2021, reflecting a significant enhancement in the company's ability to cover its short-term liabilities with cash on hand. However, the ratio slightly decreased to 0.59 in December 2022 and further declined to 0.51 in December 2023. It dropped notably to 0.25 by December 31, 2024, potentially suggesting a reduced capacity to meet immediate obligations solely with cash reserves. Overall, the company may need to closely monitor its liquidity position and implement strategies to ensure adequate cash reserves to meet short-term obligations in the future.
Peer comparison
Dec 31, 2024