Microsoft Excel LibreOffice Calc

ConocoPhillips (COP)

Liquidity Analysis

Difficulty: Beginner

Liquidity ratios measure the company’s ability to meet its short-term obligations.

Ratios (Summary)

ConocoPhillips, liquidity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Current ratio 1.79 1.76 1.25 0.95 1.31
Quick ratio 1.58 1.53 1.02 0.74 1.03
Cash ratio 1.03 1.07 0.53 0.26 0.44

Based on: 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-23), 10-K (filing date: 2015-02-24).

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. ConocoPhillips’s current ratio improved from 2016 to 2017 and from 2017 to 2018.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. ConocoPhillips’s quick ratio improved from 2016 to 2017 and from 2017 to 2018.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. ConocoPhillips’s cash ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.

Current Ratio

ConocoPhillips, current ratio calculation, comparison to benchmarks

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Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Current assets 13,274  16,512  8,609  8,789  15,068 
Current liabilities 7,395  9,397  6,909  9,256  11,537 
Ratio
Current ratio1 1.79 1.76 1.25 0.95 1.31
Benchmarks
Current Ratio, Competitors
Chevron Corp. – 1.03 0.93 1.34 1.32
EOG Resources Inc. – 1.20 1.75 1.42 1.60
Exxon Mobil Corp. – 0.82 0.87 0.79 0.82
Occidental Petroleum Corp. – 1.12 1.32 1.37 1.68
Phillips 66 – 1.42 1.34 1.63 1.50
Current Ratio, Sector
Oil & Gas Producers – 1.03 1.00 1.05 1.12
Current Ratio, Industry
Oil & Gas – 1.06 1.11 1.25 1.21

Based on: 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-23), 10-K (filing date: 2015-02-24).

2018 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 13,274 ÷ 7,395 = 1.79

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. ConocoPhillips’s current ratio improved from 2016 to 2017 and from 2017 to 2018.

Quick Ratio

ConocoPhillips, quick ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Cash and cash equivalents 5,915  6,325  3,610  2,368  5,062 
Short-term investments 248  1,873  50  –  – 
Accounts and notes receivable, net of allowance 3,920  4,179  3,249  4,314  6,675 
Accounts and notes receivable, related parties 147  141  165  200  132 
Investment in Cenovus Energy 1,462  1,899  –  –  – 
Total quick assets 11,692  14,417  7,074  6,882  11,869 
Current liabilities 7,395  9,397  6,909  9,256  11,537 
Ratio
Quick ratio1 1.58 1.53 1.02 0.74 1.03
Benchmarks
Quick Ratio, Competitors
Chevron Corp. – 0.73 0.66 0.91 0.94
EOG Resources Inc. – 0.89 1.39 0.91 1.14
Exxon Mobil Corp. – 0.50 0.53 0.44 0.51
Occidental Petroleum Corp. – 0.79 0.98 1.08 1.46
Phillips 66 – 1.05 0.96 1.10 1.12
Quick Ratio, Sector
Oil & Gas Producers – 0.71 0.68 0.68 0.79
Quick Ratio, Industry
Oil & Gas – 0.74 0.77 0.86 0.85

Based on: 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-23), 10-K (filing date: 2015-02-24).

2018 Calculations

1 Quick ratio = Total quick assets ÷ Current liabilities
= 11,692 ÷ 7,395 = 1.58

Ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. ConocoPhillips’s quick ratio improved from 2016 to 2017 and from 2017 to 2018.

Cash Ratio

ConocoPhillips, cash ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Cash and cash equivalents 5,915  6,325  3,610  2,368  5,062 
Short-term investments 248  1,873  50  –  – 
Investment in Cenovus Energy 1,462  1,899  –  –  – 
Total cash assets 7,625  10,097  3,660  2,368  5,062 
Current liabilities 7,395  9,397  6,909  9,256  11,537 
Ratio
Cash ratio1 1.03 1.07 0.53 0.26 0.44
Benchmarks
Cash Ratio, Competitors
Chevron Corp. – 0.17 0.22 0.43 0.41
EOG Resources Inc. – 0.31 0.79 0.39 0.62
Exxon Mobil Corp. – 0.05 0.08 0.07 0.07
Occidental Petroleum Corp. – 0.23 0.35 0.64 0.95
Phillips 66 – 0.31 0.29 0.41 0.47
Cash Ratio, Sector
Oil & Gas Producers – 0.21 0.20 0.24 0.29
Cash Ratio, Industry
Oil & Gas – 0.22 0.27 0.38 0.31

Based on: 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-23), 10-K (filing date: 2015-02-24).

2018 Calculations

1 Cash ratio = Total cash assets ÷ Current liabilities
= 7,625 ÷ 7,395 = 1.03

Ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. ConocoPhillips’s cash ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.