Ovintiv Inc (OVV)

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
Cash	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	39,000	82,000	190,000
Short-term investments	US$ in thousands	—	—	—	—	70,000	—	—	—	—	—	—	—	—	—	—	—	41,000
Receivables	US$ in thousands	2,420,000	1,147,000	850,000	918,000	2,790,000	1,401,000	1,738,000	1,603,000	2,371,000	1,208,000	1,201,000	1,127,000	1,957,000	879,000	973,000	976,000	2,540,000
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
Quick ratio		0.86	0.32	0.27	0.36	1.03	0.43	0.44	0.47	0.93	0.36	0.39	0.33	0.81	0.52	0.61	0.49	1.14

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,000K + $—K + $2,420,000K) ÷ $2,812,000K
= 0.86

The quick ratio for Ovintiv Inc fluctuated over the past eight quarters, ranging from 0.45 to 0.61. In Q4 2023, the quick ratio stood at 0.60, reflecting an improvement compared to the previous quarter. However, the company's quick ratio remains below 1, indicating that Ovintiv may have difficulty meeting its short-term obligations with its most liquid assets. The trend of the quick ratio over the last two years shows some volatility but generally staying within a relatively narrow range. It is essential for Ovintiv to monitor and manage its liquidity closely to ensure it can cover its current liabilities effectively.