Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
ConocoPhillips, liquidity ratios (quarterly data)
Based on: 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), 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
- The current ratio displayed a downward trend over the observed periods. Starting from 2.03 in March 2021, it experienced some fluctuations but generally declined to a range between approximately 1.29 and 1.39 from early 2023 onwards. The ratio stabilized around 1.3 in the most recent data points, indicating a moderate ability to cover short-term liabilities with current assets, though notably weaker than in 2021.
- Quick Ratio
- The quick ratio, which excludes inventory and thus provides a more stringent measure of liquidity, followed a similar declining pattern. It began near 1.81 in early 2021 and decreased steadily to hover just above 1.0 in the latest quarters. This suggests a diminishing cushion of liquid assets relative to current liabilities, reaching a level close to the minimal acceptable benchmark for liquidity.
- Cash Ratio
- The cash ratio showed the most pronounced decline among the three liquidity measures. From a relatively strong 1.18 in early 2021, the ratio dropped sharply to around 0.55 by the end of 2021. Although there were some temporary recoveries subsequently, the overall trend remained downward, settling near 0.5 in the latest quarters. This indicates a reduced proportion of cash and cash equivalents in relation to current liabilities, reflecting a more conservative cash position.
- Overall Liquidity Analysis
- Collectively, these ratios highlight a trend of decreasing liquidity over the examined timeframe. While the company retained a current ratio above 1.0, ensuring coverage of short-term obligations, the declining quick and cash ratios suggest tightening liquidity and a reliance on less liquid current assets. The continuous decline in these metrics may signal increased operational or financial challenges impacting the availability of immediate resources.
Current Ratio
ConocoPhillips, current ratio calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Current assets | |||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||||
| Current ratio1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||
| Chevron Corp. | |||||||||||||||||||||||||
| Exxon Mobil Corp. | |||||||||||||||||||||||||
Based on: 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), 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 Q3 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets exhibit a fluctuating pattern over the examined periods. Starting at 14,614 million US dollars at the end of Q1 2021, they generally increased through the first three quarters of 2021, reaching a peak of 20,181 million US dollars in Q3 2021. Following this peak, current assets decreased in Q4 2021, before rising again to a secondary peak of 20,453 million US dollars in Q3 2022. Subsequently, the value of current assets showed a downward trend towards Q2 2023, followed by moderate fluctuations with minor increases and decreases through to Q3 2025, settling at 15,884 million US dollars.
- Current Liabilities
- Current liabilities increased consistently from 7,184 million US dollars in Q1 2021 to 13,997 million US dollars in Q3 2022, indicating a substantial buildup in short-term obligations. Following that high, there was a decline through the end of 2022 and into early 2023, reaching a lower point of 9,548 million US dollars in Q2 2023. From then on, current liabilities generally increased again, peaking at 13,329 million US dollars in Q2 2025 before showing a slight decline to 12,009 million US dollars in Q3 2025. This demonstrates an overall upward trend with some short-term volatility.
- Current Ratio
- The current ratio reveals a declining trend over the analyzed periods, starting at a relatively strong 2.03 in Q1 2021, indicating a good liquidity position with current assets more than twice current liabilities. The ratio then fluctuated but predominantly declined through late 2021, reaching a low of 1.34 in Q4 2021. It experienced moderate stabilization in 2022, maintaining values around 1.46. However, from 2023 onward, the ratio consistently hovered slightly above or below 1.3, indicating a weakening liquidity position over time, with current assets only about 1.3 times the current liabilities by Q3 2025.
Quick Ratio
ConocoPhillips, quick ratio calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||||||
| Short-term investments | |||||||||||||||||||||||||
| Accounts and notes receivable, net of allowance | |||||||||||||||||||||||||
| Investment in Cenovus Energy | |||||||||||||||||||||||||
| Total quick assets | |||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||||
| Quick ratio1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||
| Chevron Corp. | |||||||||||||||||||||||||
| Exxon Mobil Corp. | |||||||||||||||||||||||||
Based on: 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), 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 Q3 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Trends in Total Quick Assets
- Total quick assets exhibit variability across the periods analyzed. Beginning at approximately $12.98 billion in early 2021, there is a general upward movement through the third quarter of 2021, reaching a peak near $17.8 billion in late 2022. Following this peak, a decline is noticeable through early 2023, dipping to roughly $11.3 billion mid-2024. Subsequently, total quick assets recover moderately, reaching about $13.6 billion by mid-2025, despite some fluctuations.
- Current Liabilities Patterns
- Current liabilities generally increase over the observed timeframe. Starting from approximately $7.18 billion in the first quarter of 2021, current liabilities rise consistently, peaking around $13.3 billion in mid-2025. Some short-term declines occur, especially in late 2021 and early to mid-2023, but the overall trajectory is upward, indicating increasing short-term obligations.
- Analysis of Quick Ratio
- The quick ratio demonstrates a declining trend over the periods. Initially strong at around 1.81 in early 2021, it dips to near 1.1 by the end of 2021, reflecting a reduction in the proportion of quick assets relative to current liabilities. Throughout 2022 and 2023, the ratio fluctuates modestly around 1.1 to 1.46, showing temporary improvements but never returning to early 2021 levels. From 2024 onwards, a gradual decline continues, nearing parity at 1.0 by mid-2025, suggesting a balanced but less liquid short-term financial position.
- Overall Financial Insight
- The data suggest an environment of growing current liabilities coupled with fluctuating quick assets that have not consistently kept pace, leading to a downward trend in liquidity as measured by the quick ratio. This pattern may indicate increased short-term financial pressures or strategic shifts affecting liquid asset management. The decline in the quick ratio to around 1.0 by mid-2025 implies that quick assets are roughly equal to current liabilities, potentially signaling a riskier liquidity stance or tightened working capital conditions compared to earlier periods.
Cash Ratio
ConocoPhillips, cash ratio calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||||||
| Short-term investments | |||||||||||||||||||||||||
| Investment in Cenovus Energy | |||||||||||||||||||||||||
| Total cash assets | |||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||||
| Cash ratio1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||
| Chevron Corp. | |||||||||||||||||||||||||
| Exxon Mobil Corp. | |||||||||||||||||||||||||
Based on: 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), 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 Q3 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
-
The total cash assets exhibited a fluctuating pattern over the periods analyzed. Beginning at $8,499 million in the first quarter of 2021, there was a notable increase to a peak of $11,927 million by the third quarter of 2021. This was followed by a sharp decline to $6,591 million by the end of 2021. The following year showed a recovery trend, with cash assets rising again to $10,422 million in the third quarter of 2022, before declining toward the end of the year.
Into 2023 and 2024, the cash assets generally hovered between approximately $5,300 million and $6,800 million, showing a more stabilized yet lower level compared to the earlier peaks seen in 2021 and 2022. This lower plateau continued into the most recent quarters of 2024 and early 2025, where cash assets remained relatively steady with minor quarter-to-quarter variations, suggesting a consolidation of liquidity levels at a moderate scale.
- Current Liabilities
-
Current liabilities displayed a consistent upward trajectory throughout the period covered. Starting at $7,184 million in the first quarter of 2021, liabilities increased steadily, reaching $12,847 million by the end of 2022. This upward trend continued into 2023 and through the first half of 2025, peaking at $13,329 million in the second quarter of 2025.
The rising current liabilities imply growing short-term financial obligations, which could indicate increased operational scale or a shift in working capital management. The consistent growth in liabilities concurrent with fluctuations in cash assets suggests possible pressures on liquidity management.
- Cash Ratio
-
The cash ratio, which measures the ability to cover current liabilities with cash and cash equivalents, showed a marked decline over the period. Beginning at a healthy 1.18 in early 2021, the ratio initially remained above one before plummeting to 0.55 by the end of 2021. This significant drop reflects a reduction in liquidity relative to short-term obligations.
Subsequent quarters displayed minor improvements, with the ratio fluctuating between approximately 0.5 and 0.9, but it generally trended downward into 2024 and 2025, falling below 0.6 and reaching as low as 0.49. This sustained lower ratio indicates reduced cash coverage of current liabilities and potentially heightened liquidity risk, aligning with the earlier observations of increasing current liabilities and moderately declining cash assets.
- Summary and Insights
-
The financial data reveals a scenario where current liabilities have been expanding steadily, while cash assets have fluctuated and generally trended downward after mid-2022. The diminishing cash ratio underscores a potential tightening of liquidity, with cash reserves increasingly insufficient to cover short-term obligations fully.
This pattern points to the need for effective liquidity management and raises considerations regarding the company’s short-term financial stability. The variations in cash assets suggest reactions to operational needs or market conditions, but the overall decline in the cash ratio may necessitate strategic attention to ensure continued solvency and operational flexibility.