Exxon Mobil Corp (XOM)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.31 | 1.35 | 1.36 | 1.38 | 1.48 | 1.42 | 1.48 | 1.46 | 1.41 | 1.34 | 1.16 | 1.07 | 1.04 | 0.90 | 0.85 | 0.80 | 0.80 | 0.86 | 0.93 | 0.78 |
| Quick ratio | 0.95 | 0.98 | 0.88 | 1.02 | 1.06 | 1.05 | 1.06 | 1.07 | 0.82 | 0.98 | 0.84 | 0.74 | 0.69 | 1.29 | 1.23 | 1.20 | 1.21 | 1.28 | 0.55 | 0.50 |
| Cash ratio | 0.33 | 0.38 | 0.27 | 0.46 | 0.48 | 0.46 | 0.48 | 0.49 | 0.21 | 0.41 | 0.24 | 0.15 | 0.12 | 0.81 | 0.78 | 0.79 | 0.85 | 0.93 | 0.22 | 0.18 |
Exxon Mobil Corp's liquidity ratios indicate its ability to meet short-term obligations. The current ratio has shown an improving trend from 0.78 in March 2020 to 1.31 in December 2024, surpassing the ideal 1.0 threshold in recent periods. This suggests the company has more current assets to cover its current liabilities.
The quick ratio, measuring immediate liquidity excluding inventory, has fluctuated but generally stayed above 1.0 since September 2020, indicating Exxon Mobil's ability to meet short-term obligations without relying on selling inventory.
The cash ratio, which assesses the firm's ability to pay off current liabilities using only cash and cash equivalents, showed a similar trend as the quick ratio. Although the ratio dipped in December 2021, it improved subsequently, reaching 0.33 in December 2024.
Overall, Exxon Mobil Corp's liquidity ratios have shown a positive trajectory, reflecting improved liquidity and a stronger ability to meet short-term obligations over the analyzed period.
See also:
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -758.91 | 653.00 | 656.62 | 629.35 | -388.14 | 818.87 | 816.38 | 794.13 | -614.69 | 786.91 | 783.28 | 747.78 | -547.48 | 655.83 | 642.89 | 765.28 | -141.86 | 536.87 | 559.70 | 397.89 |
The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle is generally favorable as it indicates that the company is able to efficiently manage its working capital and convert its resources into cash quickly.
In the case of Exxon Mobil Corp, the cash conversion cycle has displayed significant fluctuations over the periods provided. From March 2020 to December 2024, the cash conversion cycle has ranged from -758.91 days to 818.87 days. Negative values indicate that the company is able to convert its investments into cash before paying its suppliers, which can be seen as a favorable position.
The trend in Exxon Mobil Corp's cash conversion cycle shows periods of both improvement and deterioration in efficiency. For example, there are instances where the company significantly reduced its cash conversion cycle, such as in December 2021 and December 2023, indicating improved working capital management. On the other hand, there are periods where the cycle increased substantially, like in March 2021 and June 2022, reflecting potential challenges in managing working capital effectively.
Overall, Exxon Mobil Corp should aim to consistently monitor and improve its cash conversion cycle to ensure efficient utilization of resources and maximize cash flows from its operations.