Antero Midstream Partners LP (AM)

Quick ratio

		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	US$ in thousands	—	—	—	26,088	66	—	—	—	—	—	—	—	640	—	678	261	640	2,393	2,997	1,235
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	703,780	707,518	712,069	722,478	728,325	—	—
Receivables	US$ in thousands	—	—	—	—	—	940	940	96,670	87,667	80,229	76,469	79,411	82,884	86,949	91,402	89,940	91,812	105,094	97,027	150,121
Total current liabilities	US$ in thousands	100,612	91,520	115,969	107,319	96,417	110,649	96,609	96,219	102,077	106,382	123,772	139,129	114,009	118,690	117,837	79,750	94,005	61,259	98,145	83,560
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

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($—K + $—K + $—K) ÷ $100,612K
= 0.00

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered healthy, indicating that a company has enough liquid assets to cover its short-term liabilities.

In the case of Antero Midstream Partners LP, the quick ratio fluctuated significantly over the analyzed period. It was strong at 1.81 on March 31, 2020, but decreased to a concerning level of 0.01 by June 30, 2023. This drastic drop suggests a potential liquidity issue where the company may struggle to meet its short-term obligations using its liquid assets alone.

There was a slight recovery in the quick ratio to 0.24 on March 31, 2024, indicating some improvement in the company's liquidity position. However, it is still below the ideal threshold of 1, indicating that the company may need to carefully manage its short-term liquidity in the near future.

Overall, the trend in the quick ratio for Antero Midstream Partners LP shows volatility and potential liquidity challenges, highlighting the importance of monitoring the company's ability to meet its short-term financial obligations.