The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Canadian Natural Resources's current ratio for the quarter that ended in Dec. 2023 was 0.96.
Canadian Natural Resources has a current ratio of 0.96. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Canadian Natural Resources has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Canadian Natural Resources's Current Ratio or its related term are showing as below:
CNQ'
s Current Ratio Range Over the Past 10 Years
Min: 0.63 Med: 0.81 Max: 0.96
Current: 0.96
During the past 13 years, Canadian Natural Resources's highest Current Ratio was 0.96. The lowest was 0.63. And the median was 0.81.
CNQ's Current Ratio is ranked worse than 69.52% of 1076
companies
in the Oil & Gas industry
Industry Median: 1.34
vs CNQ: 0.96
Canadian Natural Resources Current Ratio Historical Data
* 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 Current Ratio
For the Oil & Gas E&P subindustry, Canadian Natural Resources's Current Ratio, along with its competitors' market caps and Current 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 Current Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Canadian Natural Resources's Current Ratio distribution charts can be found below:
* The bar in red indicates where Canadian Natural Resources's Current Ratio falls into.
Canadian Natural Resources Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
* 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 (NYSE:CNQ) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Canadian Natural Resources Current Ratio Related Terms
Thank you for viewing the detailed overview of Canadian Natural Resources's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Canadian Natural Resources (Canadian Natural Resources) 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.
Canadian Natural Resources (Canadian Natural Resources) Headlines
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