Marathon Petroleum Corp (MPC)
Quick 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 | 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 | — | — | — |
| Receivables | US$ in thousands | 11,619,000 | 12,469,000 | 10,274,000 | 10,143,000 | 13,477,000 | 13,458,000 | 17,305,000 | 15,661,000 | 11,034,000 | 9,511,000 | 9,771,000 | 7,468,000 | 5,760,000 | 4,911,000 | 4,361,000 | 5,583,000 | 7,872,000 | 7,461,000 | 7,603,000 | 6,893,000 |
| 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 |
| Quick ratio | 1.08 | 1.17 | 1.24 | 1.27 | 1.26 | 1.15 | 1.08 | 1.05 | 1.22 | 1.35 | 1.39 | 0.84 | 0.74 | 0.77 | 0.47 | 0.54 | 0.55 | 0.59 | 0.59 | 0.51 |
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 measures a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates better liquidity and a lower risk of financial distress.
Analyzing Marathon Petroleum Corp's quick ratio over the past eight quarters, we observe some fluctuation. The quick ratio ranged from 1.07 to 1.32 during this period. In Q2 and Q1 of 2023, the quick ratio stood at 1.30, indicating the company had $1.30 in liquid assets available to cover each dollar of current liabilities. This suggests that the company had a comfortable cushion to meet its short-term obligations during those quarters.
Although the quick ratio decreased to 1.13 in Q4 2023, it remained above 1, indicating the company still had sufficient liquid assets to cover its current liabilities. The overall trend of the quick ratio for Marathon Petroleum Corp appears stable, with minor fluctuations within an acceptable range over the evaluated period.
It is essential to continue monitoring the company's quick ratio to ensure its liquidity position remains healthy and can meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023