Liquidity ratios measure the company ability to meet its short-term obligations.
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- Statement of Comprehensive Income
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- Analysis of Profitability Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
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- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Total Asset Turnover since 2005
- Analysis of Revenues
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Liquidity Ratios (Summary)
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
- Current ratio
- The current ratio exhibits notable fluctuations across the reported quarters. It begins relatively moderate at 1.21 and peaks early at 2.12 by mid-2017, suggesting strong liquidity during that period. Subsequently, it declines steadily toward the end of 2017, stabilizing between 1.3 and 1.6 for most of 2018. A downward trend follows during 2019, reaching as low as 1.06 in the third quarter before a modest recovery to around 1.2 by year-end. In 2020, the ratio remains fairly stable in the 1.2 to 1.3 range, before experiencing a dip below 1.0 to 0.99 in late 2021. The ratio recovers slightly in 2022 but remains below the earlier peak levels, indicating somewhat reduced short-term liquidity compared to the 2017 high.
- Quick ratio
- The quick ratio mirrors the general pattern of the current ratio but shows more pronounced volatility. It spiked to 1.98 in mid-2017 from 1.05, reflecting an improved liquidity position excluding inventories. This was followed by a decline to approximately 1.22 by the end of 2017. Through 2018, the ratio hovered around 1.35 to 1.42, before dropping sharply through 2019, reaching a low of 0.85 in mid-2019. The quick ratio recovered somewhat by the end of 2019 and exhibited moderate stability around the 1.0 to 1.2 range in 2020 and 2021, though it again dipped below 1.0 in late 2021 and early 2022. The ratio’s movement indicates fluctuations in highly liquid assets and suggests some tightening of liquidity excluding inventory during these periods.
- Cash ratio
- The cash ratio displays the most variability and generally lower levels compared to the current and quick ratios, reflecting a more conservative liquidity measure focused on cash and cash equivalents. It rose from 0.8 to a peak of 1.26 in mid-2017 but then dropped sharply to as low as 0.29 by year-end 2017, indicating decreased immediate liquidity. Throughout 2018 and 2019, the ratio remained mostly below 0.8, with lows near 0.39 and 0.49, suggesting limited cash reserves relative to current liabilities. In 2020, the cash ratio slightly recovered but stayed under 0.8. Notably, in late 2021, the ratio hits a low of 0.29 again, reflecting a tighter cash position, before modestly improving to 0.49 by mid-2022. Overall, the cash ratio trend points to constrained cash liquidity despite periodic recoveries.
- Summary
- Across the period analyzed, the liquidity ratios reveal a cyclical yet generally declining trend in short-term financial strength. While initial quarters in 2017 show strong liquidity positions, subsequent years reflect tightening liquidity, especially evident in the quick and cash ratios. The current ratio remains above 1.0 most of the time, indicating an ability to cover current liabilities, but with less buffer than earlier. The quick and particularly the cash ratios suggest that the company’s liquidity, excluding less liquid assets, has weakened, with cash reserves often insufficient relative to liabilities. These patterns could indicate changes in working capital management or broader operational challenges affecting liquidity.
Current Ratio
Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
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Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
Current assets | |||||||||||||||||||||||||||||
Current liabilities | |||||||||||||||||||||||||||||
Liquidity Ratio | |||||||||||||||||||||||||||||
Current ratio1 | |||||||||||||||||||||||||||||
Benchmarks | |||||||||||||||||||||||||||||
Current Ratio, Competitors2 | |||||||||||||||||||||||||||||
Chevron Corp. | |||||||||||||||||||||||||||||
ConocoPhillips | |||||||||||||||||||||||||||||
Exxon Mobil Corp. | |||||||||||||||||||||||||||||
Occidental Petroleum Corp. |
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q2 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends in current assets, current liabilities, and the resulting current ratio over the examined periods.
- Current Assets
- The current assets demonstrate fluctuations across the quarters, with an initial peak of 4,424 million USD in June 2017, followed by a general downward trend reaching a low of 1,405 million USD in June 2020. After this low point, current assets show a recovery pattern, rising steadily to 2,808 million USD by June 2022. This suggests cyclical changes in liquid or short-term resources, affected possibly by internal operations or external economic conditions.
- Current Liabilities
- Current liabilities exhibit variability but with less pronounced extremes compared to current assets. They decreased from 3,099 million USD in March 2017 to a minimum of 1,065 million USD in June 2020, closely aligned with the trough in current assets. Subsequently, liabilities increased again to 2,377 million USD by June 2022. The general movement in liabilities mirrors that of current assets to some extent, indicating coordinated management of short-term obligations and resources.
- Current Ratio
- The current ratio, representing the company's ability to cover current liabilities with current assets, fluctuated throughout the periods. It peaked at 2.12 in June 2017, indicating strong short-term liquidity, then declined to around 1.1 to 1.3 in most quarters, with a notable dip below 1.0 (to 0.99) in December 2021, which is indicative of potential liquidity concerns during that quarter. Despite some volatility, the current ratio remained mostly above 1.0, suggesting that current assets generally exceeded current liabilities, ensuring short-term solvency over the long term.
Overall, the data indicates that the company experienced significant shifts in its working capital components, with a contraction period around mid-2020 followed by gradual improvements into 2022. The current ratio trends suggest maintained liquidity but highlight the importance of close monitoring during quarters where the ratio approaches or dips below unity, as observed in late 2021.
Quick Ratio
Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
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Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
Cash and cash equivalents | |||||||||||||||||||||||||||||
Receivables, net | |||||||||||||||||||||||||||||
Notes receivable | |||||||||||||||||||||||||||||
Total quick assets | |||||||||||||||||||||||||||||
Current liabilities | |||||||||||||||||||||||||||||
Liquidity Ratio | |||||||||||||||||||||||||||||
Quick ratio1 | |||||||||||||||||||||||||||||
Benchmarks | |||||||||||||||||||||||||||||
Quick Ratio, Competitors2 | |||||||||||||||||||||||||||||
Chevron Corp. | |||||||||||||||||||||||||||||
ConocoPhillips | |||||||||||||||||||||||||||||
Exxon Mobil Corp. | |||||||||||||||||||||||||||||
Occidental Petroleum Corp. |
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q2 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets exhibited notable fluctuations over the observed periods. Initially, the value increased significantly from 3,241 million US dollars at the end of Q1 2017 to 4,123 million by Q2 2017, followed by a decline to 2,393 million by the end of 2017. Throughout 2018 and 2019, these assets generally trended downward with occasional minor increases, reaching their lowest point of 1,142 million in Q2 2020. From this trough, there was a gradual recovery, culminating in an upturn to 2,674 million by mid-2022. This pattern indicates periods of asset contraction followed by a recovery phase in the most recent quarters.
- Current Liabilities
- Current liabilities demonstrated a less consistent trend relative to quick assets. Initial values were high at 3,099 million in Q1 2017, followed by a significant drop to approximately 2,082 million in Q2 2017, and a further decline towards the end of 2017. Throughout 2018, liabilities fluctuated moderately mainly between 1,800 and 2,100 million. In 2019, there was an upward trend peaking near 2,471 million in Q2, then decreasing approaching the midpoint of 2020, corresponding with the low quick assets period. From late 2020 onwards, liabilities slightly increased again, reaching 2,377 million in mid-2022. The liability levels suggest periods of fluctuating obligations, with a tendency to increase in recent quarters.
- Quick Ratio
- The quick ratio, an indicator of short-term liquidity, showed considerable variability. Starting near parity at 1.05 in Q1 2017, it peaked sharply at approximately 1.98 in mid-2017 and maintained that level until Q3 2017. However, the ratio declined significantly during late 2017 to early 2019, dropping below 1.0 in mid-2019 (0.85), indicating liquidity challenges during that period. Subsequently, the ratio improved with periodic oscillations between 1.05 and 1.26 from late 2019 through 2021, suggesting a recovery in liquidity. Notably, there was a dip below 1.0 again at the end of 2021 (0.93), followed by a marginal increase to 1.12 by mid-2022. Overall, the quick ratio reflects phases of both liquidity strength and strain, with recovery signs in the latest periods.
Cash Ratio
Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
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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 | |||||||||||||||||||||||||||||
Exxon Mobil Corp. | |||||||||||||||||||||||||||||
Occidental Petroleum Corp. |
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q2 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets exhibit a fluctuating trend over the periods analyzed. Initially, cash assets started at a high level of 2,490 million US dollars at the end of the first quarter of 2017, followed by a slight increase and then a significant decline to 563 million by the end of 2017. In 2018, cash assets recovered moderately, reaching around 1,667 million in mid-year, before declining again towards the end of the year to approximately 1,462 million. The subsequent years show continued volatility, with cash assets dropping notably in early 2020 to lows around 522 million, followed by some recovery by the end of 2020. In 2021, cash assets remained variable with a low of 485 million in the first quarter and a peak of 1,125 million in the first quarter of 2021, but ended 2021 at 580 million. The first half of 2022 saw an increase again, reaching 1,162 million.
- Current Liabilities
- Current liabilities demonstrate considerable variability but generally remain within a range of approximately 1,742 million to 3,099 million. The earliest value recorded was 3,099 million in the first quarter of 2017, which then decreased significantly through the middle and end of 2017 to around 1,968 million. Throughout 2018 and 2019, current liabilities fluctuated but remained relatively stable, mostly between 1,745 million and 2,471 million. Starting in 2020, there is a reduction in liabilities down to 1,065 million in the second quarter and then an increase again through 2021 and into 2022, reaching values above 2,000 million towards mid-2022. This indicates ongoing liability management challenges with periods of notable reduction followed by increases.
- Cash Ratio
- The cash ratio, representing the proportion of cash assets to current liabilities, follows a fluctuating downward trend with intermittent recoveries. The ratio started at 0.80 in the first quarter of 2017, peaked at 1.26 in the second quarter of that year, and then fell sharply to 0.29 by the end of 2017. There is a partial recovery in 2018, but the ratio mostly remains below 1.0, indicating that cash assets were generally less than current liabilities. Throughout 2019 and 2020, the ratio remained below 0.6, suggesting limited liquidity coverage of short-term obligations. In 2021, the ratio showed a brief improvement but declined again sharply in the final quarter to 0.29. The first half of 2022 indicates a modest improvement to 0.49. Overall, the company’s liquidity as measured by the cash ratio appears constrained, often below the threshold of full coverage of current liabilities.