Ovintiv Inc (OVV)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,000 | 3,000 | 52,000 | 26,000 | 5,000 | 18,000 | 8,000 | 271,000 | 195,000 | 8,000 | 122,000 | 9,000 | 10,000 | 32,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 70,000 | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,812,000 | 3,543,000 | 3,310,000 | 2,632,000 | 2,780,000 | 3,309,000 | 3,991,000 | 3,983,000 | 2,748,000 | 3,351,000 | 3,366,000 | 3,461,000 | 2,423,000 | 1,749,000 |
| Cash ratio | 0.00 | 0.00 | 0.02 | 0.01 | 0.03 | 0.01 | 0.00 | 0.07 | 0.07 | 0.00 | 0.04 | 0.00 | 0.00 | 0.02 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,000K
+ $—K)
÷ $2,812,000K
= 0.00
The cash ratio is a liquidity ratio that measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.
Looking at Ovintiv Inc's cash ratio over the past eight quarters, we can see fluctuations in the ratio. In Q3 2023, the cash ratio was at its lowest at 0.01, indicating a significant decrease in the company's ability to cover its short-term liabilities with cash on hand. However, in Q1 2023, the cash ratio was at its highest at 0.53, suggesting a strong liquidity position during that period.
The variations in the cash ratio over the quarters may be influenced by factors such as changes in cash reserves, operational performance, investments, or debt levels. It is important to consider the trend of the cash ratio over time to assess the company's liquidity position accurately.
Overall, while Ovintiv Inc has shown fluctuations in its cash ratio over the past quarters, further analysis and comparison with industry benchmarks can provide more insights into the company's liquidity position and financial health.
Peer comparison
Dec 31, 2023