Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Marathon Oil Corp., liquidity ratios
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.11 | 1.33 | 1.22 | 1.59 | 1.30 | |
| Quick ratio | 1.05 | 1.23 | 1.13 | 1.39 | 1.22 | |
| Cash ratio | 0.35 | 0.61 | 0.49 | 0.80 | 0.29 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Marathon Oil Corp. current ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Marathon Oil Corp. quick ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Marathon Oil Corp. cash ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Current Ratio
Marathon Oil Corp., current ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 1,821 | 1,612 | 2,135 | 2,921 | 2,566 | |
| Current liabilities | 1,637 | 1,213 | 1,745 | 1,832 | 1,968 | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.11 | 1.33 | 1.22 | 1.59 | 1.30 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Chevron Corp. | 1.26 | 1.18 | 1.07 | 1.25 | 1.03 | |
| ConocoPhillips | 1.34 | 2.25 | 2.40 | 1.79 | 1.76 | |
| Devon Energy Corp. | 1.38 | 2.26 | 2.00 | 1.99 | 1.45 | |
| Exxon Mobil Corp. | 1.04 | 0.80 | 0.78 | 0.84 | 0.82 | |
| Occidental Petroleum Corp. | 1.23 | 1.07 | 1.25 | 1.34 | 1.12 | |
| Pioneer Natural Resources Co. | 1.52 | 1.36 | 0.88 | 1.42 | 1.41 | |
| Valero Energy Corp. | 1.26 | 1.71 | 1.44 | 1.65 | 1.74 | |
| Current Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.18 | 1.09 | 1.07 | 1.15 | 1.08 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 1,821 ÷ 1,637 = 1.11
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. | Marathon Oil Corp. current ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Quick Ratio
Marathon Oil Corp., quick ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 580 | 742 | 858 | 1,462 | 563 | |
| Receivables, less reserve | 1,142 | 747 | 1,122 | 1,079 | 1,082 | |
| Notes receivable | — | — | — | — | 748 | |
| Total quick assets | 1,722 | 1,489 | 1,980 | 2,541 | 2,393 | |
| Current liabilities | 1,637 | 1,213 | 1,745 | 1,832 | 1,968 | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.05 | 1.23 | 1.13 | 1.39 | 1.22 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Chevron Corp. | 0.90 | 0.77 | 0.72 | 0.93 | 0.73 | |
| ConocoPhillips | 1.10 | 1.98 | 1.93 | 1.58 | 1.53 | |
| Devon Energy Corp. | 1.24 | 1.97 | 1.39 | 1.48 | 1.31 | |
| Exxon Mobil Corp. | 0.69 | 0.44 | 0.47 | 0.49 | 0.50 | |
| Occidental Petroleum Corp. | 0.84 | 0.52 | 0.66 | 1.07 | 0.79 | |
| Pioneer Natural Resources Co. | 1.41 | 1.22 | 0.77 | 1.24 | 1.29 | |
| Valero Energy Corp. | 0.86 | 1.01 | 0.88 | 0.96 | 1.15 | |
| Quick Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.84 | 0.69 | 0.69 | 0.79 | 0.76 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 1,722 ÷ 1,637 = 1.05
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. | Marathon Oil Corp. quick ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Cash Ratio
Marathon Oil Corp., cash ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 580 | 742 | 858 | 1,462 | 563 | |
| Total cash assets | 580 | 742 | 858 | 1,462 | 563 | |
| Current liabilities | 1,637 | 1,213 | 1,745 | 1,832 | 1,968 | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.35 | 0.61 | 0.49 | 0.80 | 0.29 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Chevron Corp. | 0.21 | 0.25 | 0.22 | 0.38 | 0.17 | |
| ConocoPhillips | 0.55 | 1.46 | 1.45 | 1.03 | 1.07 | |
| Devon Energy Corp. | 0.74 | 1.55 | 0.96 | 1.08 | 0.81 | |
| Exxon Mobil Corp. | 0.12 | 0.08 | 0.05 | 0.05 | 0.05 | |
| Occidental Petroleum Corp. | 0.33 | 0.26 | 0.23 | 0.41 | 0.23 | |
| Pioneer Natural Resources Co. | 1.00 | 0.85 | 0.36 | 0.79 | 0.99 | |
| Valero Energy Corp. | 0.24 | 0.36 | 0.20 | 0.28 | 0.53 | |
| Cash Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.25 | 0.26 | 0.22 | 0.28 | 0.26 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 580 ÷ 1,637 = 0.35
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. | Marathon Oil Corp. cash ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |