ConocoPhillips (COP)
Analysis of Liquidity Ratios
Difficulty: Beginner
Liquidity ratios measure the company’s ability to meet its short-term obligations.
Liquidity Ratios (Summary)
ConocoPhillips, liquidity ratios
| 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).
| Liquidity 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
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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 | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.79 | 1.76 | 1.25 | 0.95 | 1.31 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Chevron Corp. | 1.25 | 1.03 | 0.93 | 1.34 | 1.32 | |
| EOG Resources Inc. | 1.36 | 1.20 | 1.75 | 1.42 | 1.60 | |
| Exxon Mobil Corp. | 0.84 | 0.82 | 0.87 | 0.79 | 0.82 | |
| Occidental Petroleum Corp. | 1.34 | 1.12 | 1.32 | 1.37 | 1.68 | |
| Phillips 66 | 1.48 | 1.42 | 1.34 | 1.63 | 1.50 | |
| Current Ratio, Sector | ||||||
| Oil & Gas Producers | 1.10 | 1.03 | 1.00 | 1.05 | 1.12 | |
| Current Ratio, Industry | ||||||
| Oil & Gas | 1.09 | 1.02 | 1.05 | 1.13 | 1.15 | |
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).
1 2018 Calculation
Current ratio = Current assets ÷ Current liabilities
= 13,274 ÷ 7,395 = 1.79
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. | ConocoPhillips’s current ratio improved from 2016 to 2017 and from 2017 to 2018. |
Quick Ratio
ConocoPhillips, quick ratio calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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 | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.58 | 1.53 | 1.02 | 0.74 | 1.03 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Chevron Corp. | 0.93 | 0.73 | 0.66 | 0.91 | 0.94 | |
| EOG Resources Inc. | 0.93 | 0.89 | 1.39 | 0.91 | 1.14 | |
| Exxon Mobil Corp. | 0.49 | 0.50 | 0.53 | 0.44 | 0.51 | |
| Occidental Petroleum Corp. | 1.07 | 0.79 | 0.98 | 1.08 | 1.46 | |
| Phillips 66 | 1.03 | 1.05 | 0.96 | 1.10 | 1.12 | |
| Quick Ratio, Sector | ||||||
| Oil & Gas Producers | 0.76 | 0.71 | 0.68 | 0.68 | 0.79 | |
| Quick Ratio, Industry | ||||||
| Oil & Gas | 0.76 | 0.71 | 0.74 | 0.77 | 0.82 | |
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).
1 2018 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 11,692 ÷ 7,395 = 1.58
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. | ConocoPhillips’s quick ratio improved from 2016 to 2017 and from 2017 to 2018. |
Cash Ratio
ConocoPhillips, cash ratio calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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 | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 1.03 | 1.07 | 0.53 | 0.26 | 0.44 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Chevron Corp. | 0.38 | 0.17 | 0.22 | 0.43 | 0.41 | |
| EOG Resources Inc. | 0.42 | 0.31 | 0.79 | 0.39 | 0.62 | |
| Exxon Mobil Corp. | 0.05 | 0.05 | 0.08 | 0.07 | 0.07 | |
| Occidental Petroleum Corp. | 0.41 | 0.23 | 0.35 | 0.64 | 0.95 | |
| Phillips 66 | 0.34 | 0.31 | 0.29 | 0.41 | 0.47 | |
| Cash Ratio, Sector | ||||||
| Oil & Gas Producers | 0.26 | 0.21 | 0.20 | 0.24 | 0.29 | |
| Cash Ratio, Industry | ||||||
| Oil & Gas | 0.26 | 0.21 | 0.25 | 0.31 | 0.30 | |
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).
1 2018 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 7,625 ÷ 7,395 = 1.03
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. | ConocoPhillips’s cash ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018. |