Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Pioneer Natural Resources Co., liquidity ratios (quarterly data)
Based on: 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), 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).
The analysis of the liquidity ratios over the specified quarters reveals notable fluctuations with periodic improvements followed by declines, indicating variability in short-term financial stability.
- Current Ratio
- The current ratio exhibited significant volatility across the periods. It started close to parity at 0.99 and dropped to 0.75 by the middle of 2020, then surged to a peak of 1.52 by the end of 2021. After this peak, the ratio gradually declined, falling below 1.0 in the first quarter of 2023 and maintaining a sub-1.0 level in subsequent quarters, ending at 0.88. This pattern suggests intermittent improvements in the company's ability to cover current liabilities with current assets, followed by a gradual tightening of liquidity toward the latest periods.
- Quick Ratio
- The quick ratio mirrored the trend of the current ratio with some differences in magnitude. Beginning at 0.7, it decreased early in 2020 before rising sharply to 1.41 at the end of 2021, indicating a temporary strengthening in the company's capacity to meet short-term obligations with its most liquid assets. Following this peak, the quick ratio declined consistently, settling around 0.66 by the end of 2023. The decline after 2021 suggests increasing reliance on less liquid current assets or increased short-term liabilities.
- Cash Ratio
- The cash ratio showed the most pronounced variability, reflecting fluctuations in the most liquid assets relative to current liabilities. It began at 0.43 in early 2020, dipped to as low as 0.07 in mid-2021 and mid-2023, and peaked at 1.0 at the end of 2021. Following this high point, the cash ratio again declined, finishing near 0.13 in the last quarter of 2023. This indicates that while there were periods of strong cash reserves relative to current liabilities, these were not sustained, pointing to potential challenges in maintaining liquidity through cash or cash equivalents.
Overall, the liquidity profile indicates periodic strengthening moments, especially around late 2021, but a general trend toward lower liquidity ratios after this period. The company's capacity to cover short-term liabilities with current and liquid assets appears to have diminished somewhat by the end of the review period, which might warrant monitoring to ensure continued operational flexibility and financial health.
Current Ratio
Pioneer Natural Resources Co., current ratio calculation (quarterly data)
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Current assets | 2,605) | 2,785) | 2,342) | 3,471) | 3,726) | 4,283) | 6,321) | 6,249) | 6,173) | 2,841) | 2,359) | 2,552) | 2,595) | 2,420) | 1,195) | 2,069) | |||||
| Current liabilities | 2,974) | 3,283) | 3,199) | 3,935) | 3,887) | 4,170) | 4,749) | 4,056) | 4,073) | 4,535) | 4,273) | 3,243) | 1,906) | 1,688) | 1,584) | 2,080) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Current ratio1 | 0.88 | 0.85 | 0.73 | 0.88 | 0.96 | 1.03 | 1.33 | 1.54 | 1.52 | 0.63 | 0.55 | 0.79 | 1.36 | 1.43 | 0.75 | 0.99 | |||||
| Benchmarks | |||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||
| Chevron Corp. | 1.27 | 1.25 | 1.43 | 1.43 | 1.47 | 1.40 | 1.31 | 1.43 | 1.26 | 1.28 | 1.17 | 1.11 | — | — | — | — | |||||
| ConocoPhillips | 1.43 | 1.66 | 1.41 | 1.39 | 1.46 | 1.46 | 1.54 | 1.51 | 1.34 | 1.93 | 2.11 | 2.03 | — | — | — | — | |||||
| Exxon Mobil Corp. | 1.48 | 1.42 | 1.48 | 1.46 | 1.41 | 1.34 | 1.16 | 1.07 | 1.04 | 0.90 | 0.85 | 0.80 | — | — | — | — | |||||
Based on: 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), 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).
1 Q4 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 2,605 ÷ 2,974 = 0.88
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals fluctuating trends in current assets, current liabilities, and the resulting current ratio over the observed periods.
- Current Assets
-
Current assets exhibited considerable volatility, starting at 2,069 million US dollars at the end of Q1 2020, dipping to a low of 1,195 million in Q2 2020, then recovering to a peak of 6,173 million in Q4 2021. After this peak, current assets maintained relatively high levels around 6,000 million through mid-2022, before declining steadily to approximately 2,600 million by the end of 2023.
- Current Liabilities
-
Current liabilities showed an upward trend through 2020 and 2021, rising from 2,080 million in Q1 2020 to a peak of 4,749 million in Q2 2022. Thereafter, current liabilities generally decreased, reaching approximately 2,974 million at the end of 2023. However, this decline was not entirely consistent, with some quarters showing minor fluctuations.
- Current Ratio
-
The current ratio, measuring short-term liquidity, experienced significant fluctuations. Initial values were close to parity at 0.99 in Q1 2020 but dropped sharply to 0.55 in Q2 2021, indicating reduced liquidity. Subsequently, it recovered strongly to 1.52 by Q4 2021, reflecting improved capacity to meet short-term obligations. Following this recovery, the ratio gradually diminished again, falling below 1.0 for most of 2022 and into 2023, ending near 0.88 at Q4 2023. This suggests that despite periods of strong liquidity, the company faced recurring challenges in maintaining a current ratio above 1 in recent periods.
Overall, the data indicate cycles of liquidity tightening and improvement. The substantial increase in both current assets and liabilities through 2021 culminated in a high current ratio, but subsequent declines suggest a trend toward tightening working capital management or increased short-term obligations relative to assets. The general downward movement in the current ratio in 2022 and 2023 warrants attention, as values below 1 may imply potential liquidity constraints.
Quick Ratio
Pioneer Natural Resources Co., quick ratio calculation (quarterly data)
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Cash and cash equivalents | 240) | 98) | 91) | 1,192) | 1,032) | 1,316) | 2,579) | 2,385) | 3,847) | 581) | 93) | 668) | 1,442) | 1,325) | 180) | 784) | |||||
| Restricted cash | —) | —) | —) | —) | —) | 6) | 6) | 9) | 37) | 46) | 49) | 56) | 59) | 66) | 69) | 74) | |||||
| Accounts receivable, net | 1,590) | 1,850) | 1,513) | 1,392) | 1,853) | 1,938) | 2,344) | 2,397) | 1,685) | 1,680) | 1,670) | 1,273) | 695) | 662) | 566) | 555) | |||||
| Investment in affiliate | 139) | 176) | 137) | 119) | 172) | 134) | 167) | 231) | 135) | 144) | 152) | 177) | 123) | 67) | 85) | 42) | |||||
| Short-term investments, net | —) | —) | —) | —) | —) | 372) | 506) | 640) | 58) | —) | —) | —) | —) | —) | —) | —) | |||||
| Total quick assets | 1,969) | 2,124) | 1,741) | 2,703) | 3,057) | 3,766) | 5,602) | 5,662) | 5,762) | 2,451) | 1,964) | 2,174) | 2,319) | 2,120) | 900) | 1,455) | |||||
| Current liabilities | 2,974) | 3,283) | 3,199) | 3,935) | 3,887) | 4,170) | 4,749) | 4,056) | 4,073) | 4,535) | 4,273) | 3,243) | 1,906) | 1,688) | 1,584) | 2,080) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Quick ratio1 | 0.66 | 0.65 | 0.54 | 0.69 | 0.79 | 0.90 | 1.18 | 1.40 | 1.41 | 0.54 | 0.46 | 0.67 | 1.22 | 1.26 | 0.57 | 0.70 | |||||
| Benchmarks | |||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||
| Chevron Corp. | 0.87 | 0.84 | 0.97 | 1.03 | 1.12 | 1.03 | 1.00 | 1.12 | 0.90 | 0.90 | 0.83 | 0.77 | — | — | — | — | |||||
| ConocoPhillips | 1.21 | 1.46 | 1.19 | 1.20 | 1.27 | 1.27 | 1.34 | 1.29 | 1.10 | 1.66 | 1.86 | 1.81 | — | — | — | — | |||||
| Exxon Mobil Corp. | 1.06 | 1.05 | 1.06 | 1.07 | 1.03 | 0.98 | 0.84 | 0.74 | 0.69 | 0.55 | 0.51 | 0.47 | — | — | — | — | |||||
Based on: 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), 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).
1 Q4 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 1,969 ÷ 2,974 = 0.66
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable fluctuations and trends in the liquidity position over the observed periods. The primary focus is on total quick assets, current liabilities, and the quick ratio, which collectively provide insights into the company's short-term financial health.
- Total Quick Assets
- Total quick assets exhibited variability across the quarters, starting at 1,455 million US dollars at the end of the first quarter of 2020. There was a significant dip in the second quarter of 2020 to 900 million, followed by a recovery and growth trend reaching a peak of 5,762 million in the fourth quarter of 2021. Subsequently, a decline ensued through 2022 and into the early part of 2023 before showing marginal recovery toward the end of 2023. This pattern suggests periods of fluctuating liquidity reserves, with notable increases likely tied to operational or financing activities, and subsequent declines potentially indicating asset utilization or cash outflows.
- Current Liabilities
- Current liabilities showed an overall increasing trend from the first quarter of 2020 through the second quarter of 2021, beginning at 2,080 million and peaking at 4,535 million by the third quarter of 2021. Afterward, liabilities stabilized somewhat, fluctuating around the 4,000 million to 4,700 million range through 2022 but generally trending downward into 2023, ending at 2,974 million in the last quarter. The rise in liabilities during 2020 and 2021 could be associated with increased short-term obligations or operational expenses, while the subsequent reduction might reflect improved liability management or repayment strategies.
- Quick Ratio
- The quick ratio displayed substantial volatility across the quarters, correlating with the movements in quick assets and current liabilities. The ratio started below 1.0 at 0.7 in the first quarter of 2020, dropped to a low of 0.46 in the second quarter of 2021, signaling tight liquidity conditions at that time. However, there were periods of significant improvement, particularly in the fourth quarter of 2021, where it rose to 1.41, indicating a strong ability to cover short-term liabilities with liquid assets. After this peak, the ratio gradually decreased again, stabilizing around 0.65 by the end of 2023, pointing to moderate liquidity buffers.
Overall, the financial data suggests cyclical liquidity conditions with periods of both strength and constraint. The peak in quick assets and the concurrent improvement in the quick ratio toward the end of 2021 indicate a phase of enhanced liquidity, which was followed by a gradual tightening. The relatively moderate quick ratio in late 2023 points to a reasonable, though not excessive, liquidity cushion, which may necessitate monitoring to ensure the company maintains sufficient short-term financial flexibility.
Cash Ratio
Pioneer Natural Resources Co., cash ratio calculation (quarterly data)
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Cash and cash equivalents | 240) | 98) | 91) | 1,192) | 1,032) | 1,316) | 2,579) | 2,385) | 3,847) | 581) | 93) | 668) | 1,442) | 1,325) | 180) | 784) | |||||
| Restricted cash | —) | —) | —) | —) | —) | 6) | 6) | 9) | 37) | 46) | 49) | 56) | 59) | 66) | 69) | 74) | |||||
| Investment in affiliate | 139) | 176) | 137) | 119) | 172) | 134) | 167) | 231) | 135) | 144) | 152) | 177) | 123) | 67) | 85) | 42) | |||||
| Short-term investments, net | —) | —) | —) | —) | —) | 372) | 506) | 640) | 58) | —) | —) | —) | —) | —) | —) | —) | |||||
| Total cash assets | 379) | 274) | 228) | 1,311) | 1,204) | 1,828) | 3,258) | 3,265) | 4,077) | 771) | 294) | 901) | 1,624) | 1,458) | 334) | 900) | |||||
| Current liabilities | 2,974) | 3,283) | 3,199) | 3,935) | 3,887) | 4,170) | 4,749) | 4,056) | 4,073) | 4,535) | 4,273) | 3,243) | 1,906) | 1,688) | 1,584) | 2,080) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Cash ratio1 | 0.13 | 0.08 | 0.07 | 0.33 | 0.31 | 0.44 | 0.69 | 0.80 | 1.00 | 0.17 | 0.07 | 0.28 | 0.85 | 0.86 | 0.21 | 0.43 | |||||
| Benchmarks | |||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||
| Chevron Corp. | 0.25 | 0.18 | 0.32 | 0.47 | 0.52 | 0.42 | 0.32 | 0.38 | 0.21 | 0.24 | 0.27 | 0.26 | — | — | — | — | |||||
| ConocoPhillips | 0.66 | 0.91 | 0.71 | 0.75 | 0.72 | 0.74 | 0.67 | 0.61 | 0.55 | 1.14 | 1.31 | 1.18 | — | — | — | — | |||||
| Exxon Mobil Corp. | 0.48 | 0.46 | 0.48 | 0.49 | 0.43 | 0.41 | 0.24 | 0.15 | 0.12 | 0.08 | 0.06 | 0.06 | — | — | — | — | |||||
Based on: 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), 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).
1 Q4 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 379 ÷ 2,974 = 0.13
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable fluctuations in the company's liquidity and short-term obligations over the observed periods.
- Total Cash Assets
- The total cash assets demonstrated significant volatility. Starting at $900 million in the first quarter of 2020, the cash reserves dropped sharply mid-2020 to $334 million but rebounded strongly to reach a peak of $4,077 million by the end of 2021. Subsequently, the cash balance decreased steadily throughout 2022, settling near $1,204 million at year-end. In 2023, cash assets showed a declining trend, dropping from $1,311 million in the first quarter to a low of $228 million in the second quarter before slightly recovering to $379 million by the last quarter.
- Current Liabilities
- Current liabilities exhibited a generally upward trajectory from approximately $2,080 million in early 2020 to a peak near $4,749 million in mid-2022. Following this peak, there was a modest reduction in liabilities to $3,887 million by the end of 2022. In 2023, liabilities continued to decrease gradually, ending the year at around $2,974 million, reflecting some effort to manage short-term obligations more conservatively.
- Cash Ratio
- The cash ratio, which measures liquidity by comparing cash assets to current liabilities, fluctuated considerably. It fell from 0.43 in the first quarter of 2020 to a low of 0.07 by mid-2021, indicating a decrease in immediate liquidity relative to obligations. A peak of 1.00 was observed at the end of 2021, coinciding with the highest cash reserves, suggesting strong liquidity at that time. However, the ratio declined throughout 2022 and into 2023, reaching a low of 0.07 in the middle of 2023 before marginally increasing to 0.13 by year-end. This pattern suggests cyclicality in liquidity management and changing financial positioning over the periods.
Overall, the data indicates that while cash reserves have experienced substantial swings, current liabilities tend to increase over time with some reduction in the latest periods. The cash ratio's variability highlights challenges in maintaining consistent liquidity relative to short-term obligations, with liquidity strength peaking at the end of 2021 followed by a gradual erosion through 2023.