Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Chevron Corp., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
A comprehensive contraction in liquidity is evident across all three primary metrics from March 2022 through March 2026. The overall trend indicates a systematic reduction in the margin of safety regarding the coverage of short-term obligations, with a notable acceleration in this decline beginning in late 2023.
- Current Ratio
- The current ratio experienced a gradual decline from a peak of 1.47 in December 2022 to a low of 1.00 in June 2025. While the ratio remained above the critical 1.0 threshold throughout the period, ending at 1.09 in March 2026, the downward trajectory suggests a tighter alignment between current assets and current liabilities.
- Quick Ratio
- A more pronounced erosion of liquidity is observed in the quick ratio, which fell from 1.12 in March 2022 to 0.73 by March 2026. The ratio dropped below the 1.0 mark in June 2023 and reached a minimum of 0.62 in June 2025. This trend indicates an increasing reliance on inventory to meet short-term obligations, as the ability to cover liabilities with highly liquid assets has diminished.
- Cash Ratio
- The cash ratio exhibited the highest volatility and the most significant overall decrease. After reaching a period high of 0.52 in December 2022, the ratio declined sharply to 0.12 by June 2025. Although a temporary recovery to 0.22 occurred in September 2025, the ratio closed at 0.13 in March 2026, reflecting a substantial reduction in immediate cash availability relative to current liabilities.
The widening gap between the current ratio and the quick ratio suggests that inventory has become a larger component of the company's current asset base over time. The simultaneous decline in the cash ratio further confirms a strategic or operational shift resulting in lower cash reserves relative to short-term debt obligations.
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Current Ratio
Chevron Corp., current ratio calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current assets | 46,160) | 38,552) | 40,866) | 34,691) | 38,574) | 40,911) | 38,187) | 39,369) | 40,508) | 41,128) | 41,732) | 42,790) | 48,351) | 50,343) | 51,503) | 51,188) | 44,709) | ||||||
| Current liabilities | 42,176) | 33,387) | 35,472) | 34,827) | 35,702) | 38,558) | 35,718) | 34,027) | 32,940) | 32,258) | 33,263) | 29,847) | 33,735) | 34,208) | 36,883) | 39,121) | 31,203) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||
| Current ratio1 | 1.09 | 1.15 | 1.15 | 1.00 | 1.08 | 1.06 | 1.07 | 1.16 | 1.23 | 1.27 | 1.25 | 1.43 | 1.43 | 1.47 | 1.40 | 1.31 | 1.43 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||
| ConocoPhillips | 1.29 | 1.30 | 1.32 | 1.27 | 1.27 | 1.29 | 1.30 | 1.33 | 1.35 | 1.43 | 1.66 | 1.41 | 1.39 | 1.46 | 1.46 | 1.54 | 1.51 | ||||||
| Exxon Mobil Corp. | 1.04 | 1.15 | 1.14 | 1.25 | 1.24 | 1.31 | 1.35 | 1.36 | 1.38 | 1.48 | 1.42 | 1.48 | 1.46 | 1.41 | 1.34 | 1.16 | 1.07 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 46,160 ÷ 42,176 = 1.09
2 Click competitor name to see calculations.
The liquidity profile exhibits a gradual contraction over the analyzed period, transitioning from a position of robust short-term coverage to a more constrained liquidity state.
- Current Ratio Trends
- A peak current ratio of 1.47 was recorded in December 2022, reflecting a strong capacity to meet short-term obligations. Following this peak, a sustained downward trajectory is observed, with the ratio declining to a low of 1.00 by June 30, 2025. Although a moderate recovery to 1.15 occurred during the second half of 2025, the ratio ended at 1.09 by March 31, 2026, indicating an overall reduction in the liquidity cushion compared to the 2022 baseline.
- Current Assets Analysis
- Current assets peaked at 51,503 million USD in September 2022. A consistent decline followed, reaching a period low of 34,691 million USD in June 2025. A recovery trend emerged in the final quarters, culminating in an increase to 46,160 million USD by March 31, 2026.
- Current Liabilities Analysis
- Current liabilities exhibited relative stability for the majority of the period, fluctuating between approximately 29,847 million USD and 38,558 million USD. However, a notable increase is observed toward the end of the series, with liabilities rising to 42,176 million USD by March 31, 2026. This increase in short-term obligations offset the growth in current assets, maintaining the current ratio at a lower level than that seen in previous years.
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Quick Ratio
Chevron Corp., quick ratio calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Cash and cash equivalents | 5,323) | 6,293) | 7,725) | 4,061) | 4,638) | 6,781) | 4,699) | 4,008) | 6,278) | 8,178) | 5,797) | 9,292) | 15,668) | 17,678) | 15,164) | 12,029) | 11,671) | ||||||
| Time deposits | 4) | 4) | 2) | 5) | 5) | 4) | 4) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Marketable securities | —) | —) | —) | —) | —) | —) | —) | —) | —) | 45) | 141) | 318) | 130) | 223) | 267) | 341) | 33) | ||||||
| Accounts and notes receivable, less allowance | 25,256) | 18,075) | 17,887) | 17,663) | 19,560) | 20,684) | 19,591) | 20,752) | 20,414) | 19,921) | 21,993) | 19,285) | 19,021) | 20,456) | 22,466) | 26,860) | 23,255) | ||||||
| Total quick assets | 30,583) | 24,372) | 25,614) | 21,729) | 24,203) | 27,469) | 24,294) | 24,760) | 26,692) | 28,144) | 27,931) | 28,895) | 34,819) | 38,357) | 37,897) | 39,230) | 34,959) | ||||||
| Current liabilities | 42,176) | 33,387) | 35,472) | 34,827) | 35,702) | 38,558) | 35,718) | 34,027) | 32,940) | 32,258) | 33,263) | 29,847) | 33,735) | 34,208) | 36,883) | 39,121) | 31,203) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||
| Quick ratio1 | 0.73 | 0.73 | 0.72 | 0.62 | 0.68 | 0.71 | 0.68 | 0.73 | 0.81 | 0.87 | 0.84 | 0.97 | 1.03 | 1.12 | 1.03 | 1.00 | 1.12 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||
| ConocoPhillips | 1.07 | 1.07 | 1.00 | 1.01 | 1.02 | 1.06 | 1.08 | 1.10 | 1.13 | 1.21 | 1.46 | 1.19 | 1.20 | 1.27 | 1.27 | 1.34 | 1.29 | ||||||
| Exxon Mobil Corp. | 0.74 | 0.76 | 0.76 | 0.82 | 0.86 | 0.95 | 0.98 | 0.98 | 1.02 | 1.06 | 1.05 | 1.06 | 1.07 | 1.03 | 0.98 | 0.84 | 0.74 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 30,583 ÷ 42,176 = 0.73
2 Click competitor name to see calculations.
The company's liquidity position, as measured by the quick ratio, experienced a significant contraction over the observed period, transitioning from a position of surplus coverage to a deficit of highly liquid assets relative to short-term obligations.
- Initial Liquidity Strength (2022)
- Between March 2022 and December 2022, the quick ratio remained at or above 1.0, peaking at 1.12. During this phase, total quick assets were sufficient to cover all current liabilities, indicating a robust immediate liquidity position.
- Period of Systematic Decline (2023–2025)
- A consistent downward trajectory is observed starting in March 2023, with the ratio declining from 1.03 to a period low of 0.62 by June 2025. This erosion was primarily driven by a reduction in total quick assets, which fell from $34.8 billion in early 2023 to $21.7 billion in mid-2025, while current liabilities remained relatively high, fluctuating between $29.8 billion and $35.7 billion.
- Recent Stabilization and Asset Recovery (2025–2026)
- From September 2025 through March 2026, the quick ratio stabilized between 0.72 and 0.73. This stabilization occurred despite a sharp increase in current liabilities, which reached $42.1 billion by March 2026. The ratio was maintained through a corresponding recovery in total quick assets, which rose to $30.5 billion in the final quarter of the analysis.
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Cash Ratio
Chevron Corp., cash ratio calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Cash and cash equivalents | 5,323) | 6,293) | 7,725) | 4,061) | 4,638) | 6,781) | 4,699) | 4,008) | 6,278) | 8,178) | 5,797) | 9,292) | 15,668) | 17,678) | 15,164) | 12,029) | 11,671) | ||||||
| Time deposits | 4) | 4) | 2) | 5) | 5) | 4) | 4) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Marketable securities | —) | —) | —) | —) | —) | —) | —) | —) | —) | 45) | 141) | 318) | 130) | 223) | 267) | 341) | 33) | ||||||
| Total cash assets | 5,327) | 6,297) | 7,727) | 4,066) | 4,643) | 6,785) | 4,703) | 4,008) | 6,278) | 8,223) | 5,938) | 9,610) | 15,798) | 17,901) | 15,431) | 12,370) | 11,704) | ||||||
| Current liabilities | 42,176) | 33,387) | 35,472) | 34,827) | 35,702) | 38,558) | 35,718) | 34,027) | 32,940) | 32,258) | 33,263) | 29,847) | 33,735) | 34,208) | 36,883) | 39,121) | 31,203) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||
| Cash ratio1 | 0.13 | 0.19 | 0.22 | 0.12 | 0.13 | 0.18 | 0.13 | 0.12 | 0.19 | 0.25 | 0.18 | 0.32 | 0.47 | 0.52 | 0.42 | 0.32 | 0.38 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||
| ConocoPhillips | 0.51 | 0.58 | 0.52 | 0.49 | 0.54 | 0.50 | 0.63 | 0.58 | 0.60 | 0.66 | 0.91 | 0.71 | 0.75 | 0.72 | 0.74 | 0.67 | 0.61 | ||||||
| Exxon Mobil Corp. | 0.09 | 0.15 | 0.18 | 0.23 | 0.25 | 0.33 | 0.39 | 0.37 | 0.46 | 0.48 | 0.46 | 0.48 | 0.49 | 0.43 | 0.41 | 0.24 | 0.15 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 5,327 ÷ 42,176 = 0.13
2 Click competitor name to see calculations.
The analysis of liquidity metrics reveals a significant contraction in the immediate liquidity position over the period from March 2022 to March 2026. While the company maintained a relatively stronger cash position in 2022, there has been a sustained downward trend in the ability to cover current liabilities using only cash and cash equivalents.
- Cash Asset Volatility
- Total cash assets experienced a period of growth in 2022, peaking at 17,901 million US$ in December 2022. Following this peak, a substantial decline occurred, with cash reserves dropping to a low of 4,008 million US$ by June 2024. Although temporary recoveries occurred—most notably reaching 7,727 million US$ in September 2025—the overall trajectory reflects a marked reduction in liquid reserves compared to the 2022 baseline.
- Current Liabilities Trends
- Current liabilities remained relatively stable through 2023, fluctuating between approximately 29,800 million US$ and 34,000 million US$. However, a notable upward trend emerged toward the end of the period, culminating in a peak of 42,176 million US$ in March 2026. This increase in short-term obligations occurred while cash assets remained constrained, further pressuring liquidity ratios.
- Cash Ratio Performance
- The cash ratio demonstrates a clear decline from its peak of 0.52 in December 2022 to a low of 0.12 observed in June 2024 and June 2025. The ratio remained suppressed throughout 2024 and 2025, rarely exceeding 0.22. The period concluded with a cash ratio of 0.13 in March 2026, indicating that only 13% of current liabilities could be covered by cash assets at that time.
- Liquidity Correlation Analysis
- The deterioration of the cash ratio is primarily attributable to the sharp reduction in total cash assets between December 2022 and June 2024. While the company saw brief improvements in the ratio during late 2025, these were offset by the surge in current liabilities in early 2026, which effectively neutralized any gains in cash holdings and returned the liquidity position to near-historic lows.
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