Exxon Mobil Corp (XOM)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 | — |
| Receivables | US$ in thousands | 38,015,000 | 41,749,000 | 32,383,000 | 20,581,000 | 26,966,000 |
| Total current liabilities | US$ in thousands | 65,316,000 | 69,045,000 | 56,643,000 | 56,363,000 | 63,989,000 |
| Quick ratio | 1.06 | 0.82 | 0.69 | 1.21 | 0.47 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($31,539,000K
+ $—K
+ $38,015,000K)
÷ $65,316,000K
= 1.06
The quick ratio measures Exxon Mobil Corp.'s ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1.09 as of December 31, 2023, indicates that the company has $1.09 in quick assets available to cover each dollar of current liabilities. This suggests that Exxon Mobil has improved its liquidity position compared to the prior year, signaling a better ability to meet its short-term obligations.
The trend of Exxon Mobil's quick ratio over the past five years shows fluctuations but an overall improvement. In 2021, the quick ratio was notably lower at 0.71, indicating potential liquidity challenges. However, the ratio has since strengthened, reaching 1.09 in 2023.
The steady increase in the quick ratio reflects positively on Exxon Mobil's liquidity management efforts. It shows that the company has been able to enhance its ability to cover short-term obligations using its liquid assets. Continued monitoring of this ratio will be essential to ensure that Exxon Mobil maintains a healthy liquidity position in the future.
Peer comparison
Dec 31, 2023