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: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
- Current Ratio
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The current ratio demonstrates fluctuations over the observed periods, beginning at 1.11 in the first quarter of 2021 and generally increasing to reach a peak of 1.47 by the last quarter of 2022. This upward trend indicates an improvement in the company’s short-term liquidity, suggesting increased ability to cover current liabilities with current assets during this period.
From the beginning of 2023, there is a gradual declining trend, with the ratio decreasing from 1.43 to 1.00 by the second quarter of 2025. This decline points toward a weakening liquidity position, potentially signaling increased short-term liabilities or a reduction in current assets relative to liabilities.
- Quick Ratio
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The quick ratio follows a pattern somewhat similar to the current ratio but at generally lower values, indicating that liquid assets excluding inventory are proportionally less available to cover current liabilities. Starting at 0.77 in the first quarter of 2021, the ratio improves and peaks at 1.12 in the last quarter of 2022, reflecting a strengthening liquidity position in terms of more readily liquid assets.
Subsequently, the quick ratio exhibits a gradual decline, reaching 0.62 by the second quarter of 2025. This downward trend suggests a declining level of liquid assets relative to current liabilities, which could indicate increased financial risk in meeting short-term obligations without relying on inventory liquidation.
- Cash Ratio
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The cash ratio, representing the most liquid assets in relation to current liabilities, shows marked volatility. Initially, it remains relatively low and stable around the 0.20 to 0.27 range between the first quarter of 2021 and the fourth quarter of 2021. Subsequently, there is a significant increase, peaking at 0.52 by the last quarter of 2022. This rise indicates enhanced liquidity in terms of cash and cash equivalents, which may reflect improved cash flow management or accumulation of cash reserves.
Following the peak, the cash ratio declines steadily with some minor fluctuations, falling to 0.12 by the second quarter of 2025. The decreasing cash ratio signals reduced immediate liquidity, which could raise concerns regarding the company’s ability to meet very short-term obligations strictly from cash resources.
- Summary of Liquidity Trends
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Overall, liquidity ratios depicted a strengthening phase through 2022 across all three key metrics, followed by a consistent tapering trend commencing in early 2023 through mid-2025. This pattern may highlight a period of building financial strength that was reversed or moderated in subsequent quarters, possibly aligning with changes in operational performance, capital investments, or liability management strategies.
The decline in all liquidity measures towards the latter periods indicates a possible tightening of liquidity, which should be monitored to avoid short-term financial pressures. The reduction in quick and cash ratios is particularly noteworthy as it points to lesser availability of liquid assets to cover immediate liabilities, which might require proactive cash management or adjustments in working capital practices.
Current Ratio
Chevron Corp., current ratio calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Current assets | 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) | 33,738) | 32,137) | 32,973) | 30,433) | ||||||
| Current liabilities | 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) | 26,791) | 25,188) | 28,147) | 27,480) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||
| Current ratio1 | 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 | 1.26 | 1.28 | 1.17 | 1.11 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||
| ConocoPhillips | 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 | 1.34 | 1.93 | 2.11 | 2.03 | ||||||
| Exxon Mobil Corp. | 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 | 1.04 | 0.90 | 0.85 | 0.80 | ||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 34,691 ÷ 34,827 = 1.00
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable trends in the company's liquidity position over the observed periods. Current assets and current liabilities exhibit fluctuations, impacting the current ratio throughout the timeline.
- Current Assets
- Current assets initially increased from the first quarter of 2021 to the second quarter of 2022, peaking around mid-2022. After this peak, there is a gradual decline observed through to mid-2025, with a few fluctuations. This pattern suggests a buildup of assets during the earlier periods followed by a consistent reduction in the following years.
- Current Liabilities
- Current liabilities followed a similar upward trend through mid-2022, reaching a high point in that period. Afterward, the values fluctuated with periods of increase and decrease but generally remained elevated compared to the early 2021 levels. Toward the later periods (2024–2025), liabilities show a downward trend but remain significant in magnitude.
- Current Ratio
- The current ratio demonstrates the company's short-term liquidity resilience. It showed an improvement from early 2021 to early 2022, rising from just above 1.1 to a peak around 1.47 in late 2022, indicating a stronger ability to cover short-term obligations. However, after this peak, the current ratio steadily declined toward 1 by mid-2025, signaling a narrowing margin of liquidity. The ratio's decline potentially points to pressures on liquidity or a strategic reduction of current assets relative to liabilities.
In summary, the liquidity position strengthened through early to mid-2022 but weakened progressively after that period. The diminishing current ratio toward the end of the observed timeframe suggests increasing liquidity risk or tighter working capital management. Ongoing monitoring of these trends is advisable to ensure the company's capacity to meet short-term obligations remains adequate.
Quick Ratio
Chevron Corp., quick ratio calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Cash and cash equivalents | 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) | 5,640) | 5,998) | 7,527) | 7,076) | ||||||
| Time deposits | 5) | 5) | 4) | 4) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Marketable securities | —) | —) | —) | —) | —) | —) | 45) | 141) | 318) | 130) | 223) | 267) | 341) | 33) | 35) | 34) | 34) | 32) | ||||||
| Accounts and notes receivable, less allowance | 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) | 18,419) | 16,567) | 15,705) | 14,118) | ||||||
| Total quick assets | 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) | 24,094) | 22,599) | 23,266) | 21,226) | ||||||
| Current liabilities | 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) | 26,791) | 25,188) | 28,147) | 27,480) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||
| Quick ratio1 | 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 | 0.90 | 0.90 | 0.83 | 0.77 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||
| ConocoPhillips | 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 | 1.10 | 1.66 | 1.86 | 1.81 | ||||||
| Exxon Mobil Corp. | 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 | 0.69 | 0.55 | 0.51 | 0.47 | ||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 21,729 ÷ 34,827 = 0.62
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the liquidity position as represented by total quick assets, current liabilities, and the quick ratio over the observed periods.
- Total Quick Assets
- The total quick assets exhibited an overall upward trend from March 31, 2021, reaching a peak in the second quarter of 2022. Subsequently, there is a generally declining trend with some minor fluctuations toward the end of the period, particularly from March 31, 2023, to June 30, 2025.
- Specifically, total quick assets increased significantly from 21,226 million USD in March 2021 to a high of 39,230 million USD in June 2022. After this peak, the quick assets fell, dropping back below 25,000 million USD by June 2024 and continuing to decline to approximately 21,729 million USD by June 2025.
- Current Liabilities
- Current liabilities display an overall increase throughout the period. Starting from 27,480 million USD in March 2021, liabilities rise steadily with some fluctuations, reaching a maximum of 38,558 million USD in December 2024 before slightly declining to 34,827 million USD by June 2025.
- This upward trend in current liabilities appears consistent, with some quarters showing more pronounced increases, particularly between March 2022 and June 2022, and again approaching the end of 2024 and early 2025.
- Quick Ratio
- The quick ratio, which measures short-term liquidity by comparing quick assets to current liabilities, improved from 0.77 in March 2021 to a peak of 1.12 in March 2022 and December 2022, indicating strong short-term financial health during those periods.
- However, starting in March 2023, the quick ratio demonstrates a clear declining trend, falling below 1.0 in June 2023 and continuing downward to 0.62 by June 2025. This suggests a weakening liquidity position, with quick assets becoming insufficient relative to current liabilities over time.
Overall, the data indicate that the company strengthened its liquidity position up to mid-2022 but faced increasing pressure on its short-term financial stability thereafter. The substantial rise in current liabilities outpaced the decline in quick assets, resulting in a decreasing quick ratio. The sustained downward trajectory of the quick ratio in the latter periods highlights potential liquidity challenges that may warrant further attention to ensure adequate short-term financial flexibility.
Cash Ratio
Chevron Corp., cash ratio calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Cash and cash equivalents | 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) | 5,640) | 5,998) | 7,527) | 7,076) | ||||||
| Time deposits | 5) | 5) | 4) | 4) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Marketable securities | —) | —) | —) | —) | —) | —) | 45) | 141) | 318) | 130) | 223) | 267) | 341) | 33) | 35) | 34) | 34) | 32) | ||||||
| Total cash assets | 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) | 5,675) | 6,032) | 7,561) | 7,108) | ||||||
| Current liabilities | 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) | 26,791) | 25,188) | 28,147) | 27,480) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||
| Cash ratio1 | 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 | 0.21 | 0.24 | 0.27 | 0.26 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||
| ConocoPhillips | 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 | 0.55 | 1.14 | 1.31 | 1.18 | ||||||
| Exxon Mobil Corp. | 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 | 0.12 | 0.08 | 0.06 | 0.06 | ||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 4,066 ÷ 34,827 = 0.12
2 Click competitor name to see calculations.
The analysis of the financial indicators over the observed periods reveals several notable trends and fluctuations.
- Total cash assets
- The total cash assets exhibit substantial volatility with a general pattern of increase followed by decline. Initially, there is a noticeable rise from approximately 7.1 billion US dollars at the beginning of 2021 to a peak of around 17.9 billion by the end of 2022. This ascending trend indicates a strengthening liquidity position during this timeframe. However, from early 2023 onwards, total cash assets decline sharply, reaching a low point of about 4.0 billion by the second quarter of 2025. This decline could suggest increased cash outflows or strategic investments being made, affecting the available cash reserves.
- Current liabilities
- Current liabilities largely remain elevated and demonstrate some variability. Starting at nearly 27.5 billion US dollars in the first quarter of 2021, liabilities rise to a peak around 39.1 billion in the second quarter of 2022. Subsequent quarters show a moderate reduction but with fluctuations, maintaining a range between approximately 29.8 billion and 38.5 billion during the observed timeframe. By mid-2025, liabilities hover near 34.8 billion. The generally high magnitude of current liabilities suggests ongoing short-term obligations that the company must manage carefully to avoid liquidity stress.
- Cash ratio
- The cash ratio, a key liquidity metric, mirrors the pattern seen in cash assets with significant oscillation. Starting at around 0.26 in early 2021, the ratio increases to a peak of 0.52 at the end of 2022, indicating an improvement in the company's ability to cover current liabilities with cash alone. Post this peak, there is a marked decline in the ratio down to approximately 0.12 by mid-2025, reflecting a weakening liquidity buffer relative to short-term liabilities. The downward trend in recent periods signals potential liquidity risk if current liabilities remain high.
In summary, the data show a phase of strengthening liquidity up to late 2022, followed by a pronounced decline in cash reserves and liquidity ratios through 2025. Current liabilities remain relatively elevated, and the decreasing cash ratio in the latter periods raises concerns about the short-term financial flexibility. Continuous monitoring and management of cash flows and liabilities would be advisable to sustain financial stability.