Ovintiv Inc (OVV)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 42,000 | 3,000 | 5,000 | 195,000 | 10,000 |
| Short-term investments | US$ in thousands | — | 59,000 | 70,000 | 67,000 | 38,000 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,681,000 | 2,812,000 | 2,780,000 | 2,748,000 | 2,423,000 |
| Quick ratio | 0.02 | 0.02 | 0.03 | 0.10 | 0.02 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($42,000K
+ $—K
+ $—K)
÷ $2,681,000K
= 0.02
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. For Ovintiv Inc, the quick ratio has fluctuated over the past five years.
As of December 31, 2020, the quick ratio was very low at 0.02, indicating that the company had minimal liquid assets to cover its short-term liabilities. However, by December 31, 2021, the quick ratio improved to 0.10, suggesting a better ability to meet its immediate financial obligations.
Subsequently, the quick ratio decreased to 0.03 by December 31, 2022, before dropping further to 0.02 in both 2023 and 2024. These low quick ratios in the later years may raise concerns about Ovintiv's short-term liquidity and ability to pay off its current liabilities in a timely manner.
Overall, the fluctuation and persistently low quick ratios of Ovintiv Inc in recent years signal potential liquidity challenges that may require further investigation and management attention to ensure financial health and stability.
Peer comparison
Dec 31, 2024