DTE Energy Company (DTE)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 26,000 | 33,000 | 28,000 | 472,000 | 93,000 |
| Short-term investments | US$ in thousands | — | — | 187,000 | 42,000 | — |
| Total current liabilities | US$ in thousands | 5,883,000 | 5,173,000 | 6,346,000 | 2,691,000 | 3,997,000 |
| Cash ratio | 0.00 | 0.01 | 0.03 | 0.19 | 0.02 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($26,000K
+ $—K)
÷ $5,883,000K
= 0.00
The cash ratio of DTE Energy Co. has fluctuated over the past five years, ranging from 0.10 to 0.37. The ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio suggests a stronger liquidity position, while a lower ratio may imply potential difficulties in meeting immediate financial obligations.
In 2022, the cash ratio was relatively high at 0.20, indicating an improved liquidity position compared to the surrounding years. However, in 2023, the ratio decreased to 0.11, suggesting a lower ability to cover short-term liabilities with cash assets. The cash ratio of 0.37 in 2020 was notably high, reflecting a strong liquidity position at that time.
Overall, DTE Energy Co.'s cash ratio has displayed variability, which could be influenced by factors such as operating cash flows, capital expenditures, and debt management. Investors and analysts may closely monitor this ratio to assess the company's short-term liquidity health and potential financial risk.
Peer comparison
Dec 31, 2023