Exxon Mobil Corp (XOM)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	23,029,000	31,539,000	29,640,000	6,802,000	4,364,000
Short-term investments	US$ in thousands	—	-29,000	-14,993,000	—	43,515,000
Total current liabilities	US$ in thousands	70,307,000	65,316,000	69,045,000	56,643,000	56,363,000
Cash ratio		0.33	0.48	0.21	0.12	0.85

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($23,029,000K + $—K) ÷ $70,307,000K
= 0.33

The cash ratio of Exxon Mobil Corp has shown some fluctuations over the years. As of December 31, 2020, the cash ratio stood at 0.85, indicating that the company had $0.85 in cash and cash equivalents for every $1 of current liabilities. However, there was a significant decrease in the cash ratio to 0.12 by December 31, 2021, suggesting a potential liquidity strain.

By December 31, 2022, the cash ratio improved to 0.21, still below the ideal ratio of 1. This indicates that the company's ability to cover its short-term liabilities with cash and cash equivalents had slightly increased. Subsequently, by December 31, 2023, the cash ratio further improved to 0.48, signaling a healthier liquidity position.

As of December 31, 2024, the cash ratio decreased slightly to 0.33, which although lower than the previous year, still indicates an adequate level of cash reserves relative to current liabilities. Overall, the varying cash ratios reflect Exxon Mobil Corp's changing liquidity position over the years, with efforts being made to enhance its ability to meet short-term obligations with available cash resources.