Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
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- Common-Size Income Statement
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- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Enterprise Value (EV)
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Liquidity Ratios (Summary)
Chevron Corp., liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Current ratio | ||||||
| Quick ratio | ||||||
| Cash ratio |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Current Ratio
- The current ratio shows an initial upward trend from 1.18 in 2020 to a peak of 1.47 in 2022, indicating improving short-term liquidity during this period. However, after 2022, it declines to 1.27 in 2023 and further to 1.06 by 2024, suggesting a reduction in the buffer of current assets over current liabilities, though it remains slightly above 1.0 at the end of the period.
- Quick Ratio
- The quick ratio also improves steadily from 0.77 in 2020 to 1.12 in 2022, reflecting an increasing proportion of liquid assets excluding inventory relative to current liabilities. This is followed by a decrease to 0.87 in 2023 and 0.71 in 2024. The decline indicates a weakening in immediate liquidity after 2022, dropping below the 1.0 mark in the last two years.
- Cash Ratio
- The cash ratio exhibits more volatility. It decreases slightly from 0.25 in 2020 to 0.21 in 2021, then rises significantly to 0.52 in 2022, suggesting a strong increase in the most liquid assets. However, it falls back to 0.25 in 2023 and further declines to 0.18 in 2024, which points to diminished cash reserves relative to current liabilities in the most recent years.
Current Ratio
Chevron Corp., current ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Current ratio1 | ||||||
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Current Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Current Ratio, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets displayed an overall upward trend from 2020 through 2022, increasing from 26,078 million USD in 2020 to a peak of 50,343 million USD in 2022. However, this was followed by a decline in the subsequent years, falling to 41,128 million USD in 2023 and remaining relatively stable at 40,911 million USD in 2024.
- Current Liabilities
- Current liabilities showed a consistent increase over the entire period under review. Starting at 22,183 million USD in 2020, liabilities rose steadily each year, reaching 38,558 million USD by the end of 2024. This growth in liabilities outpaced the growth in current assets in the latter years, particularly during 2023 and 2024.
- Current Ratio
- The current ratio, reflecting liquidity, improved from 1.18 in 2020 to 1.47 in 2022, indicating an enhanced ability to cover current liabilities with current assets during that timeframe. Nevertheless, this ratio declined after 2022, dropping to 1.27 in 2023 and further to 1.06 in 2024. This downward trend suggests a weakening short-term liquidity position despite the earlier gains, likely due to the rising current liabilities and the reduction in current assets after 2022.
Quick Ratio
Chevron Corp., quick ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | ||||||
| Time deposits | ||||||
| Marketable securities | ||||||
| Accounts and notes receivable, less allowance | ||||||
| Total quick assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Quick ratio1 | ||||||
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Quick Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Quick Ratio, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets demonstrated a notable upward trend from 2020 to 2022, increasing from $17,098 million to $38,357 million. However, the subsequent years saw a decline, with values falling to $28,144 million in 2023 and slightly further to $27,469 million in 2024.
- Current Liabilities
- Current liabilities showed a persistent and steady increase throughout the entire period. Starting at $22,183 million in 2020, liabilities rose each year, reaching $38,558 million by the end of 2024. This represents a significant escalation, especially from 2023 to 2024.
- Quick Ratio
- The quick ratio improved consistently from 0.77 in 2020 to a peak of 1.12 in 2022, indicating improved short-term liquidity and a stronger ability to cover current liabilities with quick assets. However, the ratio deteriorated in the last two years, dropping to 0.87 in 2023 and further declining to 0.71 in 2024, suggesting a weakening liquidity position despite the earlier gains.
Cash Ratio
Chevron Corp., cash ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | ||||||
| Time deposits | ||||||
| Marketable securities | ||||||
| Total cash assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Cash ratio1 | ||||||
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Cash Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Cash Ratio, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total cash assets
- There was a notable increase from 5,627 million US dollars at the end of 2020 to 17,901 million in 2022, indicating a strong accumulation of cash during this period. However, the following years saw a significant decline to 8,223 million in 2023 and further to 6,785 million in 2024, suggesting a reduction in liquid assets after the peak in 2022.
- Current liabilities
- Current liabilities exhibited an overall upward trend, increasing steadily each year from 22,183 million US dollars in 2020 to 38,558 million in 2024. Although there was a minor decline from 34,208 million in 2022 to 32,258 million in 2023, the general pattern reflects a rising short-term obligation burden over the five-year span.
- Cash ratio
- The cash ratio followed a fluctuating downward trajectory. Starting at 0.25 in 2020, it dipped to 0.21 in 2021 before spiking to 0.52 in 2022, correlating with the peak in cash assets that year. Thereafter, it dropped significantly to 0.25 in 2023 and further to 0.18 in 2024, indicating a decreasing ability to cover current liabilities with cash on hand, despite having a large cash reserve in 2022.