Exxon Mobil Corp (XOM)

Liquidity ratios

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 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 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 0.78 0.78 0.74 0.77
Quick ratio 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 0.47 0.48 0.45 0.48
Cash ratio 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 0.05 0.08 0.06 0.07

Exxon Mobil Corp.'s liquidity ratios show a mixed performance over the past eight quarters. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has generally been above 1, indicating a healthy level of liquidity. The ratio has been relatively stable around 1.4, with a slight increase in the most recent quarter to 1.48.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown a positive trend, staying above 1 in all quarters. The ratio improved from 1.01 in Q3 2022 to 1.09 in the most recent quarter, indicating that Exxon Mobil has an adequate level of quick assets to meet its short-term liabilities.

The cash ratio, which provides the most conservative measure of liquidity by only considering cash and cash equivalents relative to current liabilities, has shown variability but an overall positive trend. The ratio has increased from 0.27 in Q2 2022 to 0.51 in the most recent quarter. This improvement suggests that the company has been able to increase its cash reserves relative to its short-term obligations.

Overall, Exxon Mobil Corp. has maintained a solid liquidity position over the past eight quarters, as evidenced by its current, quick, and cash ratios. The increasing trend in these ratios indicates that the company has been effectively managing its liquidity and is well-positioned to meet its short-term financial commitments.

See also:

Exxon Mobil Corp Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days -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 -341.23 530.57 575.77 554.23

The cash conversion cycle of Exxon Mobil Corp. has shown fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle was 41.03 days, a decrease from the previous quarter. This indicates that the company took less time to convert its investments in inventory and other resources into cash during this period.

Overall, the trend in the cash conversion cycle has been relatively stable, with some fluctuations quarter by quarter. However, in general, the company has managed to maintain a relatively efficient cash conversion cycle, which is essential for liquidity management and working capital efficiency.

It is worth noting that the cash conversion cycle is a key metric in evaluating how effectively a company manages its cash flows and operating cycles. A lower cash conversion cycle indicates a more efficient use of resources and faster conversion of investments into cash, which can be a positive indicator of financial health.

Exxon Mobil Corp. should continue to monitor and potentially improve its cash conversion cycle to optimize its working capital management and maintain healthy liquidity levels in the future.