Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
Exxon Mobil Corp., liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Current ratio | ||||||
| Quick ratio | ||||||
| Cash ratio |
Based on: 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), 10-K (reporting date: 2020-12-31).
- Current Ratio
- The current ratio exhibited a consistent upward trend from 0.8 in 2020 to a peak of 1.48 in 2023, indicating an improving ability to cover short-term liabilities with current assets. However, in 2024, the ratio slightly declined to 1.31, which still represents a relatively strong liquidity position compared to the initial value in 2020.
- Quick Ratio
- This ratio, which excludes inventory from current assets to assess more immediate liquidity, also showed steady improvement over the period. Starting at 0.44 in 2020, it nearly doubled by 2022 to 1.03 and peaked at 1.06 in 2023. In 2024, the quick ratio decreased marginally to 0.95, maintaining a position close to one, which suggests the company retained good liquid assets available to meet immediate obligations.
- Cash Ratio
- The cash ratio, indicating the most liquid assets relative to current liabilities, experienced the most pronounced increase among the three ratios. It rose from a low 0.08 in 2020 to 0.48 in 2023, reflecting a significant buildup of cash or cash equivalents. In 2024, this ratio decreased to 0.33, which still suggests a better liquidity position than in the earlier years, albeit with a notable reduction from the previous year's peak.
Overall, the liquidity position showed marked improvement from 2020 through 2023 across all measures, suggesting enhanced short-term financial stability. The slight declines in 2024 may warrant monitoring but do not appear to materially weaken the liquidity status relative to the starting point. This pattern could reflect strategic liquidity management or operational variations impacting available liquid assets.
Current Ratio
Exxon Mobil Corp., current ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Current ratio1 | ||||||
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Occidental Petroleum Corp. | ||||||
| Current Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Current Ratio, Industry | ||||||
| Energy | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- Current assets increased significantly from 44,893 million US dollars at the end of 2020 to a peak of 97,631 million US dollars at the end of 2022. Following this peak, the value slightly decreased but remained relatively high at 96,609 million US dollars in 2023 and dropped further to 91,990 million US dollars in 2024.
- Current Liabilities
- Current liabilities showed a moderate increase over the period. Starting at 56,363 million US dollars in 2020, liabilities edged up to 56,643 million US dollars in 2021, then experienced a more substantial increase to 69,045 million US dollars in 2022. There was a subsequent decrease to 65,316 million US dollars in 2023, but liabilities rose again to 70,307 million US dollars in 2024, surpassing the 2022 level.
- Current Ratio
- The current ratio, reflecting liquidity, showed a steady improvement from 0.80 in 2020 to 1.04 in 2021, indicating improved short-term financial health. This ratio continued its upward trend, reaching 1.41 in 2022 and peaking at 1.48 in 2023, before slightly declining to 1.31 in 2024. Despite the minor decrease in the last period, this still represents a stronger liquidity position compared to the earlier years.
- Overall Insights
- The data indicates an overall strengthening of the company's liquidity position over the five-year period. Both current assets and current liabilities increased, but current assets grew at a considerably higher rate, which is reflected in the improving current ratio. Although the current ratio decreased slightly in the most recent year, it remains above 1, suggesting the company maintains sufficient short-term assets to cover its short-term liabilities. This pattern signals a calculated approach to balancing assets and liabilities, aiming to support operational liquidity and financial flexibility.
Quick Ratio
Exxon Mobil Corp., quick ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | ||||||
| Notes and accounts receivable, trade, less reserves | ||||||
| Notes and accounts receivable, other, less reserves | ||||||
| Total quick assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Quick ratio1 | ||||||
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Occidental Petroleum Corp. | ||||||
| Quick Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Quick Ratio, Industry | ||||||
| Energy | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets demonstrate a strong upward trend from 24,945 million US dollars in 2020 to a peak of 71,389 million US dollars in 2022. After this peak, there is a slight decline over the next two years, falling to 66,710 million US dollars by 2024. This indicates a substantial increase in liquid assets over the initial three-year period, followed by some contraction but remaining significantly higher than the starting point.
- Current Liabilities
- Current liabilities remained relatively stable from 2020 to 2021, with values close to 56,363 and 56,643 million US dollars respectively. There was a noticeable increase in 2022 to 69,045 million US dollars. Then a moderate decline occurred in 2023 to 65,316 million US dollars, followed by a new increase in 2024 reaching 70,307 million US dollars, which is the highest level within the observed period. Overall, current liabilities show some volatility but trend upwards over the five years.
- Quick Ratio
- The quick ratio reflects improvement in short-term liquidity over the analyzed period. Starting at 0.44 in 2020, it rose substantially to 1.03 by 2022, indicating an enhanced ability to cover current liabilities with quick assets. The ratio remains relatively stable thereafter, slightly increasing to 1.06 in 2023 and then slightly declining to 0.95 in 2024. Despite the minor decrease in the last year, the quick ratio remains close to parity, suggesting a stronger liquidity position than at the beginning of the period.
- Summary
- The data reveals a significant enhancement in liquidity from 2020 to 2022, driven primarily by a marked increase in quick assets that outpaced the rise in current liabilities, resulting in the quick ratio improving from below 0.5 to just above 1. From 2022 onwards, although quick assets experienced a slight decline, the quick ratio remained near one, reflecting a maintained balanced liquidity position despite increased current liabilities in 2024. This pattern suggests that the company has successfully increased its liquid asset base relative to short-term obligations over the years but faces a slight moderation in liquidity efficiency toward the end of the period.
Cash Ratio
Exxon Mobil Corp., cash ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | ||||||
| Total cash assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Cash ratio1 | ||||||
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Occidental Petroleum Corp. | ||||||
| Cash Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Cash Ratio, Industry | ||||||
| Energy | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets exhibit a notable upward trend from 2020 to 2023, increasing significantly from 4,364 million USD in 2020 to a peak of 31,539 million USD in 2023. However, in 2024, there is a decline to 23,029 million USD, which, while lower than the peak, remains substantially higher than the initial values in 2020 and 2021.
- Current Liabilities
- Current liabilities have generally increased over the period. Starting at 56,363 million USD in 2020, they remain relatively stable through 2021 and 2023, hovering in the mid-56,000 to mid-65,000 million USD range, before reaching the highest value of 70,307 million USD in 2024. This suggests a gradual rise in short-term obligations.
- Cash Ratio
- The cash ratio, indicative of the company's liquidity to cover current liabilities with cash assets, shows improvement from 0.08 in 2020 to a peak of 0.48 in 2023. This rise corresponds with the increase in cash assets. Nonetheless, the ratio decreases to 0.33 in 2024, reflecting the combination of increased current liabilities and reduced cash assets, though the liquidity remains higher compared to the early years.