Marathon Oil Corporation (MRO)
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 | 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 | — | — | — | — | — | — |
| Receivables | US$ in thousands | 1,152,000 | 1,434,000 | 1,294,000 | 1,215,000 | 1,146,000 | 1,358,000 | 1,512,000 | 1,443,000 | 1,142,000 | 1,068,000 | 1,008,000 | 921,000 | 747,000 | 643,000 | 620,000 | 789,000 | 1,122,000 | 1,190,000 | 1,186,000 | 1,128,000 |
| 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 |
| Quick ratio | 0.33 | 0.56 | 0.71 | 0.65 | 0.65 | 1.02 | 1.13 | 1.05 | 1.05 | 0.93 | 1.26 | 1.08 | 1.60 | 1.42 | 1.07 | 1.11 | 1.13 | 0.99 | 0.87 | 1.16 |
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 been fluctuating over the past eight quarters, ranging from a low of 0.35 to a high of 1.14. The quick ratio measures the company's ability to cover its short-term obligations with its most liquid assets, excluding inventory. A quick ratio below 1 indicates potential liquidity issues, as the company may not have enough liquid assets to cover its current liabilities.
In the most recent quarter, Q4 2023, the quick ratio decreased to 0.35 from 0.58 in the previous quarter, Q3 2023. This significant decline suggests a weakening ability of the company to meet its short-term obligations without relying on inventory. Further analysis of the company's current assets and liabilities is necessary to understand the reasons behind this decrease.
On the positive side, Marathon Oil Corporation had healthier quick ratios above 1 in the quarters of Q3 and Q2 2022, indicating a stronger ability to cover its short-term liabilities with its liquid assets during those periods. However, the recent downward trend in the quick ratio raises concerns about the company's liquidity position. Investors and stakeholders should closely monitor future financial statements and disclosures to assess the company's liquidity risk and financial health.
Peer comparison
Dec 31, 2023