Marathon Oil Corporation (MRO)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,569,000 | 1,671,000 | 1,821,000 | 1,612,000 | 2,135,000 |
| Total current liabilities | US$ in thousands | 3,922,000 | 2,306,000 | 1,637,000 | 1,213,000 | 1,745,000 |
| Current ratio | 0.40 | 0.72 | 1.11 | 1.33 | 1.22 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,569,000K ÷ $3,922,000K
= 0.40
The current ratio of Marathon Oil Corporation has exhibited a declining trend over the past five years. As of December 31, 2023, the current ratio stands at 0.40, indicating that the company has $0.40 in current assets for every $1 in current liabilities. This represents a significant decrease from the previous year's ratio of 0.72.
The decreasing current ratio may raise concerns about the company's ability to meet its short-term obligations comfortably. A current ratio below 1 suggests that Marathon Oil Corporation may be facing liquidity challenges and could potentially struggle to cover its short-term liabilities with its current assets alone.
Further analysis and investigation into the company's current asset composition and the nature of its current liabilities are warranted to understand the underlying reasons for the declining current ratio and assess the overall financial health and liquidity position of Marathon Oil Corporation.
Peer comparison
Dec 31, 2023