Antero Midstream Partners LP (AM)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.17 | 1.09 | 0.89 | 1.25 | 0.95 | 0.86 | 0.97 | 1.02 | 0.87 | 0.76 | 0.62 | 0.58 | 0.74 | 0.74 | 0.78 | 1.14 | 1.00 | 1.76 | 1.03 | 1.81 |
| Quick ratio | 0.00 | 0.00 | 0.00 | 0.24 | 0.00 | 0.01 | 0.01 | 1.00 | 0.86 | 0.75 | 0.62 | 0.57 | 0.73 | 6.66 | 6.79 | 10.06 | 8.67 | 13.64 | 1.02 | 1.81 |
| Cash ratio | 0.00 | 0.00 | 0.00 | 0.24 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 5.93 | 6.01 | 8.93 | 7.69 | 11.93 | 0.03 | 0.01 |
The liquidity ratios of Antero Midstream Partners LP indicate fluctuations in the company's short-term financial health over the years.
1. Current Ratio:
- The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, shows a downward trend from 2020 to mid-2023, fluctuating between 0.58 and 1.25 during this period.
- A ratio above 1 indicates that the company has more current assets than current liabilities to meet its short-term obligations. The ratios above 1 till mid-2021 reflect a healthy liquidity position, although there was a decline in the subsequent quarters.
2. Quick Ratio:
- The quick ratio, a more stringent liquidity measure excluding inventory from current assets, shows significant variability over the years.
- The quick ratio was exceptionally high in the third quarter of 2020, indicating a substantial proportion of current assets were in cash or cash equivalents that could be quickly liquidated.
3. Cash Ratio:
- The cash ratio, the strictest liquidity metric that focuses solely on cash and cash equivalents to cover current liabilities, was minimal throughout the period.
- The ratio suggests Antero Midstream Partners LP had a low cash balance relative to its current liabilities, indicating vulnerability to meeting short-term obligations solely from its cash reserves.
Overall, the liquidity ratios of the company demonstrate fluctuations and potential challenges in managing short-term liquidity positions effectively. It is essential for the company to closely monitor and manage its current assets and liabilities to ensure sufficient liquidity to meet its short-term commitments.
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.34 | 0.35 | 13.62 | 8.43 | 4.59 | 2.29 | -6.87 | 6.33 | 7.62 | 9.86 | 20.85 | 33.74 | 33.05 | 32.30 | 50.39 |
The cash conversion cycle of Antero Midstream Partners LP, a measure of how efficiently the company manages its working capital, has shown a significant improvement over the period from March 31, 2020, to December 31, 2024.
Initially, the cash conversion cycle was around 50 days in March 2020, indicating that the company took approximately 50 days to convert its investments in inventory and other resources into cash flows from sales. This figure decreased consistently over the subsequent quarters, reaching negative values by March 31, 2022, implying that the company was able to convert its investments into cash more rapidly than the time it took to pay off its expenses.
From June 30, 2022, to December 31, 2024, the cash conversion cycle remained consistently low, indicating that the company was managing its working capital efficiently, potentially by reducing inventory levels, improving collections from customers, or extending payment terms to suppliers.
Overall, the decreasing trend and low or negative values of the cash conversion cycle suggest that Antero Midstream Partners LP improved its liquidity position and efficiency in managing its working capital over the analyzed period. A lower cash conversion cycle is typically favorable as it indicates that the company is able to generate cash more quickly from its operational activities.