Antero Midstream Partners LP (AM)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 66 | — | — | 640 | 1,235 |
| Short-term investments | US$ in thousands | — | — | — | 722,478 | — |
| Total current liabilities | US$ in thousands | 96,417 | 102,077 | 114,009 | 94,005 | 242,084 |
| Cash ratio | 0.00 | 0.00 | 0.00 | 7.69 | 0.01 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($66K
+ $—K)
÷ $96,417K
= 0.00
The cash ratio of Antero Midstream Corp has shown some fluctuation over the past five years. The cash ratio was 0.02 as of December 31, 2023, which indicates that for every dollar of current liabilities, the company has $0.02 in cash and cash equivalents available to cover its short-term obligations. This ratio has improved from the previous year when it was 0.01, reflecting an increase in the company's ability to meet its immediate financial commitments.
However, when compared to the cash ratios of the years 2021, 2020, and 2019, which were also in the range of 0.01 to 0.02, the company's liquidity position has remained relatively stable over the past few years. It is important to note that a higher cash ratio is generally preferred as it indicates a stronger ability to cover short-term liabilities without relying on external sources of funding.
Overall, while the recent increase in the cash ratio is a positive sign for Antero Midstream Corp, further improvement in this ratio would enhance the company's liquidity position and financial stability. It is advisable for investors and stakeholders to continue monitoring the company's cash management practices to ensure its ability to meet short-term obligations effectively.
Peer comparison
Dec 31, 2023