Analysis of Liquidity Ratios
Beginner level
Liquidity ratios measure the company’s ability to meet its short-term obligations.
Liquidity Ratios (Summary)
ConocoPhillips, liquidity ratios
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Current ratio | 2.40 | 1.79 | 1.76 | 1.25 | 0.95 | |
| Quick ratio | 1.93 | 1.58 | 1.53 | 1.02 | 0.74 | |
| Cash ratio | 1.45 | 1.03 | 1.07 | 0.53 | 0.26 |
Based on: 10-K (filing date: 2020-02-18), 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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | ConocoPhillips’s current ratio improved from 2017 to 2018 and from 2018 to 2019. |
| 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 2017 to 2018 and from 2018 to 2019. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | ConocoPhillips’s cash ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
Current Ratio
ConocoPhillips, current ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 16,913 | 13,274 | 16,512 | 8,609 | 8,789 | |
| Current liabilities | 7,043 | 7,395 | 9,397 | 6,909 | 9,256 | |
| Liquidity Ratio | ||||||
| Current ratio1 | 2.40 | 1.79 | 1.76 | 1.25 | 0.95 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Chevron Corp. | 1.07 | 1.25 | 1.03 | 0.93 | 1.34 | |
| Exxon Mobil Corp. | 0.78 | 0.84 | 0.82 | 0.87 | 0.79 | |
| Current Ratio, Sector | ||||||
| Oil & Gas Producers | 0.98 | 1.04 | 0.97 | 0.92 | 0.97 | |
Based on: 10-K (filing date: 2020-02-18), 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).
1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 16,913 ÷ 7,043 = 2.40
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 2017 to 2018 and from 2018 to 2019. |
Quick Ratio
ConocoPhillips, quick ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 5,088 | 5,915 | 6,325 | 3,610 | 2,368 | |
| Short-term investments | 3,028 | 248 | 1,873 | 50 | — | |
| Accounts and notes receivable, net of allowance | 3,267 | 3,920 | 4,179 | 3,249 | 4,314 | |
| Accounts and notes receivable, related parties | 134 | 147 | 141 | 165 | 200 | |
| Investment in Cenovus Energy | 2,111 | 1,462 | 1,899 | — | — | |
| Total quick assets | 13,628 | 11,692 | 14,417 | 7,074 | 6,882 | |
| Current liabilities | 7,043 | 7,395 | 9,397 | 6,909 | 9,256 | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.93 | 1.58 | 1.53 | 1.02 | 0.74 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Chevron Corp. | 0.72 | 0.93 | 0.73 | 0.66 | 0.91 | |
| Exxon Mobil Corp. | 0.47 | 0.49 | 0.50 | 0.53 | 0.44 | |
| Quick Ratio, Sector | ||||||
| Oil & Gas Producers | 0.64 | 0.71 | 0.67 | 0.62 | 0.61 | |
Based on: 10-K (filing date: 2020-02-18), 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).
1 2019 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 13,628 ÷ 7,043 = 1.93
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 2017 to 2018 and from 2018 to 2019. |
Cash Ratio
ConocoPhillips, cash ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 5,088 | 5,915 | 6,325 | 3,610 | 2,368 | |
| Short-term investments | 3,028 | 248 | 1,873 | 50 | — | |
| Investment in Cenovus Energy | 2,111 | 1,462 | 1,899 | — | — | |
| Total cash assets | 10,227 | 7,625 | 10,097 | 3,660 | 2,368 | |
| Current liabilities | 7,043 | 7,395 | 9,397 | 6,909 | 9,256 | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 1.45 | 1.03 | 1.07 | 0.53 | 0.26 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Chevron Corp. | 0.22 | 0.38 | 0.17 | 0.22 | 0.43 | |
| Exxon Mobil Corp. | 0.05 | 0.05 | 0.05 | 0.08 | 0.07 | |
| Cash Ratio, Sector | ||||||
| Oil & Gas Producers | 0.20 | 0.23 | 0.19 | 0.17 | 0.19 | |
Based on: 10-K (filing date: 2020-02-18), 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).
1 2019 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 10,227 ÷ 7,043 = 1.45
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 deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |