Marathon Oil Corporation (MRO)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 1,152,000 | 1,146,000 | 1,142,000 | 747,000 | 1,122,000 |
| Total current liabilities | US$ in thousands | 3,922,000 | 2,306,000 | 1,637,000 | 1,213,000 | 1,745,000 |
| Quick ratio | 0.33 | 0.65 | 1.05 | 1.60 | 1.14 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($155,000K
+ $—K
+ $1,152,000K)
÷ $3,922,000K
= 0.33
The quick ratio of Marathon Oil Corporation has shown a declining trend over the past five years. In 2023, the quick ratio was 0.35, indicating that the company had $0.35 in liquid assets available to cover each dollar of current liabilities. This represents a significant decrease from 2022 when the quick ratio was 0.67.
A quick ratio below 1 may suggest that the company may have difficulty meeting its short-term obligations with its liquid assets alone. It is important to note that a quick ratio of less than 1 does not necessarily indicate immediate financial distress, as the company may have other sources of liquidity to meet its obligations.
Further analysis and monitoring of Marathon Oil Corporation's liquidity position, cash flow generation, and management of working capital are recommended to assess the company's ability to meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023