Marathon Oil Corporation (MRO)

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	155,000	174,000	215,000	178,000	334,000	1,109,000	1,162,000	681,000	580,000	485,000	970,000	1,125,000	742,000	1,119,000	522,000	817,000	858,000	1,165,000	961,000	1,019,000
Short-term investments	US$ in thousands	—	10,000	10,000	9,000	9,000	8,000	4,000	—	—	—	—	—	447,000	467,000	—	—	—	—	—	—
Total current liabilities	US$ in thousands	3,922,000	2,906,000	2,125,000	2,146,000	2,306,000	2,431,000	2,377,000	2,021,000	1,637,000	1,676,000	1,575,000	1,899,000	1,213,000	1,566,000	1,065,000	1,442,000	1,745,000	2,379,000	2,471,000	1,858,000
Cash ratio		0.04	0.06	0.11	0.09	0.15	0.46	0.49	0.34	0.35	0.29	0.62	0.59	0.98	1.01	0.49	0.57	0.49	0.49	0.39	0.55

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 fluctuated over the past eight quarters. The cash ratio, which represents the company's ability to cover its short-term obligations with its available cash and cash equivalents, reached its highest point in Q2 2022 at 0.51, indicating a strong liquidity position at that time. However, the ratio has since declined steadily to 0.06 in Q4 2023, suggesting a decrease in the company's ability to meet its short-term obligations purely from its cash reserves.

This downward trend in the cash ratio may raise concerns about Marathon Oil Corporation's liquidity management and its ability to handle unforeseen financial challenges. It is important for investors and stakeholders to monitor the company's cash position closely to ensure that it can effectively manage its short-term financial obligations in the future.