Analysis of Liquidity Ratios
Liquidity ratios measure the company’s ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Chevron Corp., liquidity ratios
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.18 | 1.07 | 1.25 | 1.03 | 0.93 | |
| Quick ratio | 0.77 | 0.72 | 0.93 | 0.73 | 0.66 | |
| Cash ratio | 0.25 | 0.22 | 0.38 | 0.17 | 0.22 |
Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Chevron Corp.’s current ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Chevron Corp.’s quick ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Chevron Corp.’s cash ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Current Ratio
Chevron Corp., current ratio calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 26,078 | 28,329 | 34,021 | 28,560 | 29,619 | |
| Current liabilities | 22,183 | 26,530 | 27,171 | 27,737 | 31,785 | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.18 | 1.07 | 1.25 | 1.03 | 0.93 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Exxon Mobil Corp. | 0.80 | 0.78 | 0.84 | 0.82 | 0.87 | |
| Current Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.90 | 0.87 | 0.97 | 0.89 | 0.89 | |
Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).
1 2020 Calculation
Current ratio = Current assets ÷ Current liabilities
= 26,078 ÷ 22,183 = 1.18
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Chevron Corp.’s current ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level. |
Quick Ratio
Chevron Corp., quick ratio calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 5,596 | 5,686 | 9,342 | 4,813 | 6,988 | |
| Time deposits | — | — | 950 | — | — | |
| Marketable securities | 31 | 63 | 53 | 9 | 13 | |
| Accounts and notes receivable, less allowance | 11,471 | 13,325 | 15,050 | 15,353 | 14,092 | |
| Total quick assets | 17,098 | 19,074 | 25,395 | 20,175 | 21,093 | |
| Current liabilities | 22,183 | 26,530 | 27,171 | 27,737 | 31,785 | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.77 | 0.72 | 0.93 | 0.73 | 0.66 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Exxon Mobil Corp. | 0.44 | 0.47 | 0.49 | 0.50 | 0.53 | |
| Quick Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.54 | 0.54 | 0.63 | 0.57 | 0.58 | |
Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).
1 2020 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 17,098 ÷ 22,183 = 0.77
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Chevron Corp.’s quick ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Cash Ratio
Chevron Corp., cash ratio calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 5,596 | 5,686 | 9,342 | 4,813 | 6,988 | |
| Time deposits | — | — | 950 | — | — | |
| Marketable securities | 31 | 63 | 53 | 9 | 13 | |
| Total cash assets | 5,627 | 5,749 | 10,345 | 4,822 | 7,001 | |
| Current liabilities | 22,183 | 26,530 | 27,171 | 27,737 | 31,785 | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.25 | 0.22 | 0.38 | 0.17 | 0.22 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Exxon Mobil Corp. | 0.08 | 0.05 | 0.05 | 0.05 | 0.08 | |
| Cash Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.13 | 0.10 | 0.16 | 0.09 | 0.13 | |
Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).
1 2020 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 5,627 ÷ 22,183 = 0.25
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Chevron Corp.’s cash ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |