Marathon Oil Corporation (MRO)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 155,000 | 334,000 | 580,000 | 742,000 | 858,000 |
| Short-term investments | US$ in thousands | — | 9,000 | — | 447,000 | 9,000 |
| Total current liabilities | US$ in thousands | 3,922,000 | 2,306,000 | 1,637,000 | 1,213,000 | 1,745,000 |
| Cash ratio | 0.04 | 0.15 | 0.35 | 0.98 | 0.50 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($155,000K
+ $—K)
÷ $3,922,000K
= 0.04
The cash ratio of Marathon Oil Corporation has exhibited a declining trend over the past five years, dropping from 0.54 in 2019 to 0.06 in 2023. This ratio indicates the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A lower cash ratio may signal potential liquidity issues or inefficient cash management. It is essential for Marathon Oil Corporation to closely monitor its cash position and improve cash flow management to ensure its ability to meet its short-term obligations.
Peer comparison
Dec 31, 2023