Current Ratio
since 2005
Calculation
Apache Corp., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2015 | 2.04 | = | 3,752) | ÷ | 1,841) |
| Dec 31, 2014 | 1.75 | = | 6,415) | ÷ | 3,664) |
| Dec 31, 2013 | 1.35 | = | 6,366) | ÷ | 4,700) |
| Dec 31, 2012 | 0.90 | = | 4,962) | ÷ | 5,536) |
| Dec 31, 2011 | 0.97 | = | 4,803) | ÷ | 4,963) |
| Dec 31, 2010 | 0.99 | = | 3,480) | ÷ | 3,524) |
| Dec 31, 2009 | 1.92 | = | 4,586) | ÷ | 2,393) |
| Dec 31, 2008 | 1.70 | = | 4,451) | ÷ | 2,615) |
| Dec 31, 2007 | 1.03 | = | 2,752) | ÷ | 2,665) |
| Dec 31, 2006 | 0.65 | = | 2,490) | ÷ | 3,812) |
| Dec 31, 2005 | 0.99 | = | 2,162) | ÷ | 2,187) |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The liquidity position from 2005 to 2015 was characterized by significant volatility, with the current ratio fluctuating between a low of 0.65 and a high of 2.04. The overall trend demonstrates three distinct phases of liquidity contraction and expansion.
- Initial Volatility and Recovery (2005–2009)
- After starting near parity in 2005, the current ratio experienced a sharp decline to 0.65 in 2006, indicating a period of heightened short-term obligations relative to liquid assets. This was followed by a consistent upward trajectory, peaking at 1.92 in 2009. This recovery was driven by a substantial increase in current assets, which grew from 2,752 million in 2007 to 4,586 million in 2009, while current liabilities simultaneously decreased.
- Liquidity Contraction (2010–2012)
- A secondary period of deteriorating liquidity occurred between 2010 and 2012. The current ratio fell below the 1.00 threshold for three consecutive years, reaching a low of 0.90 by December 31, 2012. This downward trend was primarily influenced by a rise in current liabilities, which reached a period peak of 5,536 million in 2012, outpacing the growth in current assets.
- Liquidity Strengthening (2013–2015)
- A sustained recovery in the current ratio began in 2013, climbing from 1.35 to a period high of 2.04 by 2015. Notably, the increase in 2015 was achieved despite a significant reduction in total current assets to 3,752 million. This improvement was driven by a more aggressive reduction in current liabilities, which fell to 1,841 million, the lowest level recorded across the entire analyzed timeframe.
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Comparison to Competitors
Apache Corp., current ratio, long-term trends, comparison to competitors
| Apache Corp. | Chevron Corp. | ConocoPhillips | ExxonMobil Holdings Corp. | |
|---|---|---|---|---|
| Dec 31, 2015 | 2.04 | 1.34 | 0.95 | 0.79 |
| Dec 31, 2014 | 1.75 | 1.32 | 1.31 | 0.82 |
| Dec 31, 2013 | 1.35 | 1.52 | 1.26 | 0.83 |
| Dec 31, 2012 | 0.90 | 1.63 | 1.38 | 1.01 |
| Dec 31, 2011 | 0.97 | 1.58 | 1.08 | 0.94 |
| Dec 31, 2010 | 0.99 | 1.68 | 1.26 | 0.94 |
| Dec 31, 2009 | 1.92 | 1.42 | 0.89 | 1.06 |
| Dec 31, 2008 | 1.70 | 1.14 | 0.96 | 1.47 |
| Dec 31, 2007 | 1.03 | 1.17 | 0.92 | 1.47 |
| Dec 31, 2006 | 0.65 | 1.28 | 0.95 | 1.55 |
| Dec 31, 2005 | 0.99 | 1.37 | 0.92 | 1.58 |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Oil, Gas & Consumable Fuels)
Apache Corp., current ratio, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Apache Corp. | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Dec 31, 2015 | 2.04 | 0.97 |
| Dec 31, 2014 | 1.75 | 1.02 |
| Dec 31, 2013 | 1.35 | 1.07 |
| Dec 31, 2012 | 0.90 | 1.25 |
| Dec 31, 2011 | 0.97 | 1.12 |
| Dec 31, 2010 | 0.99 | 1.20 |
| Dec 31, 2009 | 1.92 | 1.11 |
| Dec 31, 2008 | 1.70 | 1.26 |
| Dec 31, 2007 | 1.03 | 1.26 |
| Dec 31, 2006 | 0.65 | 1.32 |
| Dec 31, 2005 | 0.99 | 1.37 |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Energy)
Apache Corp., current ratio, long-term trends, comparison to industry (energy)
| Apache Corp. | Energy | |
|---|---|---|
| Dec 31, 2015 | 2.04 | 1.09 |
| Dec 31, 2014 | 1.75 | 1.10 |
| Dec 31, 2013 | 1.35 | 1.16 |
| Dec 31, 2012 | 0.90 | 1.31 |
| Dec 31, 2011 | 0.97 | 1.18 |
| Dec 31, 2010 | 0.99 | 1.24 |
| Dec 31, 2009 | 1.92 | 1.17 |
| Dec 31, 2008 | 1.70 | 1.28 |
| Dec 31, 2007 | 1.03 | 1.27 |
| Dec 31, 2006 | 0.65 | 1.33 |
| Dec 31, 2005 | 0.99 | 1.38 |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).