Ovintiv Inc (OVV)

Current 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
Total current assets	US$ in thousands	1,676,000	1,581,000	1,479,000	1,395,000	1,695,000	1,702,000	2,030,000	2,168,000	1,587,000	1,328,000	1,443,000	1,239,000	1,247,000	1,219,000	1,474,000	2,241,000	1,869,000
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	1,653,000	2,160,000	2,432,000
Current ratio		0.60	0.45	0.45	0.53	0.61	0.51	0.51	0.54	0.58	0.40	0.43	0.36	0.51	0.70	0.89	1.04	0.77

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,676,000K ÷ $2,812,000K
= 0.60

The current ratio of Ovintiv Inc has fluctuated over the past eight quarters, ranging from a low of 0.45 to a high of 0.61. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A current ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities.

Looking at the trend, the current ratio decreased in Q3 2023 compared to the previous quarter, indicating potential liquidity challenges. However, it improved slightly in Q4 2023 but still remained below 1. This suggests that Ovintiv Inc may have issues meeting its short-term obligations with its current assets.

Overall, the current ratio of Ovintiv Inc has been relatively low over the past eight quarters, which may raise concerns about the company's liquidity position and its ability to cover its short-term liabilities effectively. It would be important for Ovintiv Inc to closely monitor and manage its current assets and liabilities to improve its liquidity position in the future.