The Cash Ratio measures a company’s ability to meet its short-term obligations with cash and near-cash resources. It is calculated as a company's Cash, Cash Equivalents, Marketable Securities divides by its Total Current Liabilities. Canadian Natural Resources's Cash Ratio for the quarter that ended in Dec. 2023 was 0.19.
Canadian Natural Resources has a Cash Ratio of 0.19. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Canadian Natural Resources's Cash Ratio or its related term are showing as below:
TSX:CNQ'
s Cash Ratio Range Over the Past 10 Years
Min: 0.09 Med: 0.16 Max: 0.23
Current: 0.19
During the past 13 years, Canadian Natural Resources's highest Cash Ratio was 0.23. The lowest was 0.09. And the median was 0.16.
TSX:CNQ's Cash Ratio is ranked worse than 70.48% of 1023
companies
in the Oil & Gas industry
Industry Median: 0.41
vs TSX:CNQ: 0.19
Canadian Natural Resources Cash Ratio Historical Data
The historical data trend for Canadian Natural Resources's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Canadian Natural Resources's Cash Ratio
For the Oil & Gas E&P subindustry, Canadian Natural Resources's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Canadian Natural Resources's Cash Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Canadian Natural Resources's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Canadian Natural Resources's Cash Ratio falls into.
Canadian Natural Resources Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Canadian Natural Resources's Cash Ratio for the fiscal year that ended in Dec. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Canadian Natural Resources (TSX:CNQ) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Canadian Natural Resources Cash Ratio Related Terms
Thank you for viewing the detailed overview of Canadian Natural Resources's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Canadian Natural Resources (TSX:CNQ) Business Description
Canadian Natural Resources Ltd is an independent crude oil and natural gas exploration, development, and production company. The Company's exploration and production operations are focused in North America, largely in Western Canada; the United Kingdom (UK) portion of the North Sea, and Cote d'Ivoire and South Africa in Offshore Africa. The Company's exploration and production activities are conducted in three geographic segments: North America, the North Sea, and Offshore Africa. These activities include the exploration, development, production, and marketing of crude oil, natural gas liquids, and natural gas. The company has two divisions; Oil Sands Mining and Upgrading Midstream and Refining. It derives a majority of its revenue from North America.
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