10 Mega-Cap Stocks With Decreasing Liquidity

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 |  Includes: BCE, E, EC, GILD, KMB, PM, PTR, TRP, TSM, XOM
by: Kapitall

Companies rely on their sources of liquidity such as cash and marketable securities to continue funding daily operations. If a company sees consistent decreases in liquidity over time, it could be a big red flag.

We ran a screen on the 200 largest companies by market cap for those with decreasing liquidity, with decreasing current ratios over the last four years. The current ratio is current assets/current liabilities, and is commonly used to gauge liquidity.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these companies are in trouble? Use this list as a starting point for your own analysis.

List sorted by market cap.

1. Exxon Mobil Corporation (NYSE:XOM): Engages in the exploration and production of crude oil and natural gas, and manufacture of petroleum products, as well as transportation and sale of crude oil, natural gas, and petroleum products. Market cap of $381.20B. Current Ratios decreased from 1.4742 to 1.4718 during the first time interval (12 months ending 2008-12-31 vs. 12 months ending 2007-12-31). For the second time interval, Current Ratios decreased from 1.47 to 1.06 (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). And for the final time interval, Current Ratios decreased from 1.06 to 0.94 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). The stock has gained 12.73% over the last year.

2. PetroChina Co. Ltd. (NYSE:PTR): Produces and distributes oil and gas in the People's Republic of China. Market cap of $209.41B. Current Ratios decreased from 1.18 to 0.85 during the first time interval (12 months ending 2008-12-31 vs. 12 months ending 2007-12-31). For the second time interval, Current Ratios decreased from 0.85 to 0.76 (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). And for the final time interval, Current Ratios decreased from 0.76 to 0.67 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). The stock has performed poorly over the last month, losing 10.24%.

3. Philip Morris International, Inc. (NYSE:PM): Engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Market cap of $132.36B. Current Ratios decreased from 1.83 to 1.47 during the first time interval (12 months ending 2008-12-31 vs. 12 months ending 2007-12-31). For the second time interval, Current Ratios decreased from 1.47 to 1.31 (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). And for the final time interval, Current Ratios decreased from 1.31 to 1.07 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). The stock has gained 33.43% over the last year.

4. Ecopetrol SA (NYSE:EC): Operates as an integrated oil company in Colombia, Peru, Brazil, and the U. Market cap of $86.39B. Current Ratios decreased from 3.43 to 2.84 during the first time interval (12 months ending 2008-12-31 vs. 12 months ending 2007-12-31). For the second time interval, Current Ratios decreased from 2.84 to 1.78 (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). And for the final time interval, Current Ratios decreased from 1.78 to 1.24 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). The stock has gained 7.26% over the last year.

5. Eni SpA (NYSE:E): Engages in the exploration, production, transportation, transformation, and marketing of oil and natural gas. Market cap of $78.06B. Current Ratios decreased from 1.12 to 1.05 during the first time interval (12 months ending 2008-12-31 vs. 12 months ending 2007-12-31). For the second time interval, Current Ratios decreased from 1.05 to 1.02 (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). And for the final time interval, Current Ratios decreased from 1.02 to 1 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). It's been a rough couple of days for the stock, losing 6.16% over the last week.

6. Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM): Engages in the computer-aided designing, manufacturing, packaging, testing, and selling integrated circuits and other semiconductor devices; and manufacturing masks. Market cap of $63.86B. Current Ratios decreased from 5.13 to 4.45 during the first time interval (12 months ending 2008-12-31 vs. 12 months ending 2007-12-31). For the second time interval, Current Ratios decreased from 4.45 to 3.28 (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). And for the final time interval, Current Ratios decreased from 3.28 to 2.12 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). The stock has gained 4.14% over the last year.

7. BCE, Inc. (NYSE:BCE): Provides wireline voice and wireless communications services, Internet access, data services, and video services to residential, business, and wholesale customers in Canada. Market cap of $30.43B. Current Ratios decreased from 1.16 to 0.9 during the first time interval (12 months ending 2008-12-31 vs. 12 months ending 2007-12-31). For the second time interval, Current Ratios decreased from 0.9 to 0.69 (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). And for the final time interval, Current Ratios decreased from 0.69 to 0.6 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). The stock has gained 18.98% over the last year.

8. TransCanada Corp. (NYSE:TRP): Operates as an energy infrastructure company in North America. Market cap of $29.40B. Current Ratios decreased from 0.76 to 0.7 during the first time interval (12 months ending 2008-12-31 vs. 12 months ending 2007-12-31). For the second time interval, Current Ratios decreased from 0.7 to 0.64 (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). And for the final time interval, Current Ratios decreased from 0.64 to 0.57 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). The stock has gained 16.3% over the last year.

9. Gilead Sciences Inc. (NASDAQ:GILD): Engages in the discovery, development, and commercialization of therapeutics for the treatment of life threatening diseases worldwide. Market cap of $28.15B. Current Ratios decreased from 4.11 to 3.5 during the first time interval (12 months ending 2008-12-31 vs. 12 months ending 2007-12-31). For the second time interval, Current Ratios decreased from 3.5 to 2.57 (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). And for the final time interval, Current Ratios decreased from 2.57 to 2.32 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). The stock has gained 0.75% over the last year.

10. Kimberly-Clark Corporation (NYSE:KMB): Engages in the manufacture and marketing of health care products worldwide. Market cap of $28.06B. Current Ratios decreased from 1.24 to 1.22 during the first time interval (12 months ending 2008-12-31 vs. 12 months ending 2007-12-31). For the second time interval, Current Ratios decreased from 1.22 to 1.19 (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). And for the final time interval, Current Ratios decreased from 1.19 to 1.19 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). The stock has gained 17.71% over the last year.

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.