Marathon Petroleum Corp (MPC)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	5,443,000	8,452,000	7,345,000	7,960,000	8,625,000	7,376,000	9,078,000	7,148,000	5,291,000	5,874,000	11,839,000	624,000	415,000	618,000	1,091,000	1,690,000	1,393,000	1,525,000	1,247,000	877,000
Short-term investments	US$ in thousands	4,781,000	4,604,000	4,109,000	3,492,000	3,145,000	3,759,000	4,241,000	3,449,000	5,548,000	7,352,000	5,418,000	5,435,000	5,422,000	5,462,000	—	—	134,000	—	—	—
Total current liabilities	US$ in thousands	20,150,000	21,735,000	17,466,000	17,057,000	20,020,000	21,314,000	28,437,000	25,120,000	17,898,000	16,898,000	19,512,000	16,085,000	15,663,000	14,246,000	11,504,000	13,569,000	16,948,000	15,339,000	14,890,000	15,147,000
Cash ratio		0.51	0.60	0.66	0.67	0.59	0.52	0.47	0.42	0.61	0.78	0.88	0.38	0.37	0.43	0.09	0.12	0.09	0.10	0.08	0.06

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 of Marathon Petroleum Corp has shown a fluctuating trend over the past eight quarters. The cash ratio, which measures the company's ability to cover its short-term liabilities with cash and cash equivalents, ranged from 0.45 to 0.71 during this period.

In Q1 2022, the cash ratio was relatively low at 0.45, indicating that the company had less cash on hand compared to its short-term liabilities. However, there was an improvement in the subsequent quarters, with the ratio increasing to 0.49 in Q2 2022 and further to 0.56 in Q3 2022.

The trend continued to be positive in Q4 2022, with the cash ratio reaching 0.65, suggesting that Marathon Petroleum Corp had a stronger liquidity position to meet its short-term financial obligations. The ratio remained relatively stable in the following quarters of 2023, fluctuating between 0.56 and 0.71.

Overall, the cash ratio of Marathon Petroleum Corp indicates that the company has been managing its liquidity well and has gradually strengthened its ability to cover short-term liabilities with cash and cash equivalents. However, the fluctuating nature of the ratio may require continued monitoring to ensure sustainable liquidity management in the future.