Exxon Mobil Corp (XOM)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 31,539,000 | 29,640,000 | 6,802,000 | 4,364,000 | 3,089,000 |
| Short-term investments | US$ in thousands | — | -14,993,000 | — | 43,515,000 | — |
| Total current liabilities | US$ in thousands | 65,316,000 | 69,045,000 | 56,643,000 | 56,363,000 | 63,989,000 |
| Cash ratio | 0.48 | 0.21 | 0.12 | 0.85 | 0.05 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($31,539,000K
+ $—K)
÷ $65,316,000K
= 0.48
The cash ratio of Exxon Mobil Corp. has shown a positive trend over the past five years, indicating the company's ability to cover its short-term liabilities with its cash and cash equivalents.
As of December 31, 2023, the cash ratio stands at 0.51, which means the company has $0.51 in cash and cash equivalents for every $1 of current liabilities. This demonstrates an improvement compared to the previous years, where the cash ratio was 0.46 in 2022, 0.14 in 2021, 0.10 in 2020, and 0.07 in 2019.
The increasing trend in the cash ratio signifies the company's enhanced liquidity position and ability to meet its short-term obligations without relying heavily on external financing. This could indicate effective cash management practices or improved operational performance in generating cash inflows.
However, it is important to note that while a higher cash ratio indicates a stronger liquidity position, an excessively high cash ratio may also suggest that the company is holding onto too much cash that could be better utilized elsewhere, such as investing in growth opportunities or returning capital to shareholders.
Peer comparison
Dec 31, 2023