DTE Energy Company (DTE)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 24,000 | 26,000 | 33,000 | 28,000 | 472,000 |
| Short-term investments | US$ in thousands | — | 0 | — | 187,000 | 42,000 |
| Total current liabilities | US$ in thousands | 5,106,000 | 5,883,000 | 5,173,000 | 6,346,000 | 2,691,000 |
| Cash ratio | 0.00 | 0.00 | 0.01 | 0.03 | 0.19 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($24,000K
+ $—K)
÷ $5,106,000K
= 0.00
The cash ratio of DTE Energy Company has declined steadily over the past five years. As of December 31, 2020, the cash ratio was 0.19, indicating that the company had $0.19 in cash and cash equivalents for every $1 of current liabilities. However, by December 31, 2024, the cash ratio had dropped to 0.00, suggesting that the company had minimal cash reserves relative to its current liabilities.
This decrease in the cash ratio may raise concerns about DTE Energy's liquidity position and its ability to meet short-term obligations with its available cash resources. It could indicate that the company may need to rely more heavily on other sources of funding or manage its working capital more efficiently to support its operations and financial health.
Overall, the declining trend in DTE Energy's cash ratio highlights the importance of monitoring the company's liquidity position closely to ensure it can meet its financial obligations in a timely manner.
Peer comparison
Dec 31, 2024