Marathon Petroleum Corp (MPC)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 11,619,000 | 13,477,000 | 11,034,000 | 5,760,000 | 7,872,000 |
| Total current liabilities | US$ in thousands | 20,150,000 | 20,020,000 | 17,898,000 | 15,663,000 | 16,948,000 |
| Quick ratio | 1.08 | 1.26 | 1.22 | 0.74 | 0.55 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($5,443,000K
+ $4,781,000K
+ $11,619,000K)
÷ $20,150,000K
= 1.08
The quick ratio of Marathon Petroleum Corp has shown variability over the past five years, ranging from a low of 0.57 in 2020 to a high of 1.32 in 2022. The quick ratio measures the company's ability to meet its short-term liabilities with its most liquid assets, excluding inventory, and a ratio above 1 indicates that the company has an adequate level of liquid assets to cover its short-term obligations.
In 2023, the quick ratio decreased to 1.13 from 1.32 in the previous year, which may suggest a slight weakening in the company's ability to cover its short-term liabilities with its readily available assets. It is important to note that a quick ratio of above 1 is generally considered healthy, and the downward trend in recent years should be closely monitored to ensure the company's liquidity position remains stable. Further analysis of the company's current assets and liabilities is recommended to gain deeper insights into its short-term financial health.
Peer comparison
Dec 31, 2023