Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Exxon Mobil Corp., liquidity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.15 | 1.31 | 1.48 | 1.41 | 1.04 | |
| Quick ratio | 0.76 | 0.95 | 1.06 | 1.03 | 0.69 | |
| Cash ratio | 0.15 | 0.33 | 0.48 | 0.43 | 0.12 |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The liquidity position of the company exhibits fluctuating trends over the five-year period. Generally, liquidity metrics improved from 2021 to 2023, followed by a decline through 2025. These shifts suggest changes in the company’s short-term asset management and financing strategies.
- Current Ratio
- The current ratio increased from 1.04 in 2021 to 1.48 in 2023, indicating a strengthening ability to cover short-term liabilities with short-term assets. However, this ratio decreased to 1.15 by 2025, suggesting a potential weakening in short-term liquidity. The initial increase could be attributed to increased current assets relative to current liabilities, while the subsequent decline may reflect a faster growth in current liabilities or a decrease in current assets.
- Quick Ratio
- Similar to the current ratio, the quick ratio demonstrated improvement from 0.69 in 2021 to 1.06 in 2023. This indicates an enhanced capacity to meet short-term obligations with the most liquid assets. A subsequent decrease to 0.76 in 2025 suggests a diminishing ability to cover immediate liabilities without relying on inventory sales. The quick ratio’s movement closely mirrors the current ratio, indicating that changes in inventory levels are not the primary driver of the observed trends.
- Cash Ratio
- The cash ratio experienced the most significant relative change. It rose from 0.12 in 2021 to 0.48 in 2023, demonstrating a substantial increase in the company’s ability to cover immediate liabilities with cash and cash equivalents. However, the ratio declined to 0.15 by 2025, representing a considerable reduction in the proportion of current liabilities covered by the most liquid assets. This suggests a strategic shift in cash management, potentially involving investments in other assets or increased short-term obligations.
Overall, the company’s liquidity position strengthened between 2021 and 2023 across all three measured ratios. The subsequent decline in these ratios from 2023 to 2025 warrants further investigation to determine the underlying causes and potential implications for the company’s financial health.
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Current Ratio
Exxon Mobil Corp., current ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 83,382) | 91,990) | 96,609) | 97,631) | 59,154) | |
| Current liabilities | 72,330) | 70,307) | 65,316) | 69,045) | 56,643) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.15 | 1.31 | 1.48 | 1.41 | 1.04 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Chevron Corp. | 1.15 | 1.06 | 1.27 | 1.47 | 1.26 | |
| ConocoPhillips | 1.30 | 1.29 | 1.43 | 1.46 | 1.34 | |
| Current Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.17 | 1.23 | 1.41 | 1.44 | 1.14 | |
| Current Ratio, Industry | ||||||
| Energy | 1.19 | 1.25 | 1.40 | 1.42 | 1.15 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 83,382 ÷ 72,330 = 1.15
2 Click competitor name to see calculations.
The current ratio exhibited a fluctuating pattern over the five-year period. Initially, the ratio increased from 2021 to 2023, then decreased from 2023 to 2025.
- Overall Trend
- The current ratio demonstrated an initial improvement in liquidity, followed by a decline. The ratio began at 1.04 in 2021 and peaked at 1.48 in 2023 before decreasing to 1.15 in 2025.
- 2021 to 2022
- A substantial increase in the current ratio was observed, moving from 1.04 to 1.41. This suggests an improvement in the company’s ability to cover short-term liabilities with short-term assets during this period. This increase was driven by a larger percentage increase in current assets compared to current liabilities.
- 2022 to 2023
- The current ratio continued to rise, albeit at a slower pace, from 1.41 to 1.48. This indicates a sustained, though diminishing, improvement in short-term liquidity. Both current assets and current liabilities increased, but the growth in current assets slightly outpaced that of current liabilities.
- 2023 to 2025
- A downward trend in the current ratio became apparent, decreasing from 1.48 in 2023 to 1.15 in 2025. This suggests a weakening in the company’s short-term liquidity position. While current assets decreased, current liabilities also increased, contributing to the decline. The decrease from 2023 to 2024 was more pronounced than the decrease from 2024 to 2025.
The fluctuations in the current ratio suggest changes in the company’s working capital management or short-term financing strategies over the observed period.
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Quick Ratio
Exxon Mobil Corp., quick ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 10,681) | 23,029) | 31,539) | 29,640) | 6,802) | |
| Notes and accounts receivable, trade, less reserves | 35,744) | 35,282) | 30,296) | 32,844) | 26,883) | |
| Notes and accounts receivable, other, less reserves | 8,818) | 8,399) | 7,719) | 8,905) | 5,500) | |
| Total quick assets | 55,243) | 66,710) | 69,554) | 71,389) | 39,185) | |
| Current liabilities | 72,330) | 70,307) | 65,316) | 69,045) | 56,643) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.76 | 0.95 | 1.06 | 1.03 | 0.69 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Chevron Corp. | 0.73 | 0.71 | 0.87 | 1.12 | 0.90 | |
| ConocoPhillips | 1.07 | 1.06 | 1.21 | 1.27 | 1.10 | |
| Quick Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.79 | 0.88 | 1.02 | 1.09 | 0.80 | |
| Quick Ratio, Industry | ||||||
| Energy | 0.80 | 0.89 | 1.01 | 1.06 | 0.80 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 55,243 ÷ 72,330 = 0.76
2 Click competitor name to see calculations.
The quick ratio exhibited fluctuating performance over the five-year period. Initially, the ratio demonstrated improvement, followed by a subsequent decline.
- Overall Trend
- The quick ratio began at 0.69 in 2021 and increased to a peak of 1.06 in 2023 before decreasing to 0.76 by 2025. This indicates an initial strengthening of the company’s ability to meet short-term obligations with its most liquid assets, followed by a weakening of that position.
- Year-over-Year Changes
- From 2021 to 2022, the quick ratio increased from 0.69 to 1.03, representing a substantial improvement in liquidity. A further, albeit smaller, increase was observed from 2022 to 2023, with the ratio reaching 1.06. However, the trend reversed from 2023 onward. The ratio decreased to 0.95 in 2024 and continued its downward trajectory, falling to 0.76 in 2025.
- Asset and Liability Dynamics
- Total quick assets increased significantly from 2021 to 2022, driving the initial improvement in the quick ratio. While quick assets remained relatively stable between 2022 and 2023, current liabilities also remained relatively stable. The subsequent decline in the quick ratio from 2023 to 2025 appears to be driven by a combination of decreasing quick assets and increasing current liabilities. Current liabilities experienced a consistent increase over the latter part of the period, while quick assets showed a more pronounced decline.
The observed trend suggests a potential weakening in the company’s short-term liquidity position towards the end of the analyzed period. Continued monitoring of both quick assets and current liabilities is warranted.
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Cash Ratio
Exxon Mobil Corp., cash ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 10,681) | 23,029) | 31,539) | 29,640) | 6,802) | |
| Total cash assets | 10,681) | 23,029) | 31,539) | 29,640) | 6,802) | |
| Current liabilities | 72,330) | 70,307) | 65,316) | 69,045) | 56,643) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.15 | 0.33 | 0.48 | 0.43 | 0.12 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Chevron Corp. | 0.19 | 0.18 | 0.25 | 0.52 | 0.21 | |
| ConocoPhillips | 0.58 | 0.50 | 0.66 | 0.72 | 0.55 | |
| Cash Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.20 | 0.30 | 0.43 | 0.49 | 0.20 | |
| Cash Ratio, Industry | ||||||
| Energy | 0.21 | 0.30 | 0.42 | 0.47 | 0.21 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 10,681 ÷ 72,330 = 0.15
2 Click competitor name to see calculations.
The cash ratio exhibited significant fluctuations over the five-year period. Initially, the ratio was relatively low, then increased substantially before declining again. This indicates a changing ability to cover current liabilities with immediately available cash.
- Cash Ratio Trend
- The cash ratio began at 0.12 in 2021, suggesting a limited capacity to cover short-term obligations with cash. A substantial increase was observed in 2022, reaching 0.43, indicating a significantly improved liquidity position. This improvement continued into 2023, with the ratio peaking at 0.48. However, a decline commenced in 2024, falling to 0.33, and continued into 2025, reaching 0.15. This represents a return to a level comparable to that observed in 2021.
- Total Cash Assets
- Total cash assets increased dramatically from US$6,802 million in 2021 to US$29,640 million in 2022, and further to US$31,539 million in 2023. This growth likely contributed to the initial rise in the cash ratio. Subsequently, cash assets decreased to US$23,029 million in 2024 and continued to decline to US$10,681 million in 2025, aligning with the decreasing cash ratio.
- Current Liabilities
- Current liabilities generally increased throughout the period, moving from US$56,643 million in 2021 to US$72,330 million in 2025. While there was a slight decrease from 2022 to 2023 (US$69,045 million to US$65,316 million), the overall trend is upward. This increasing liability burden, coupled with the declining cash assets in later years, contributed to the reduction in the cash ratio.
The observed pattern suggests a period of liquidity strengthening followed by a weakening position. The substantial increase in cash assets in 2022 and 2023 provided a buffer, but the subsequent decrease in cash combined with rising current liabilities eroded this advantage.
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