DTE Energy Company (DTE)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,539,000 | 4,180,000 | 3,317,000 | 3,498,000 | 3,086,000 |
| Total current liabilities | US$ in thousands | 5,883,000 | 5,173,000 | 6,346,000 | 2,691,000 | 3,997,000 |
| Current ratio | 0.60 | 0.81 | 0.52 | 1.30 | 0.77 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,539,000K ÷ $5,883,000K
= 0.60
The current ratio of DTE Energy Co. has fluctuated over the past five years. In 2023, the current ratio decreased to 0.60 from 0.81 in 2022, indicating a decline in the company's ability to cover its short-term obligations with its current assets. This may raise concerns about liquidity and the company's ability to meet its short-term financial obligations.
Compared to 2021 when the current ratio was at a low of 0.52, the current ratio improved in 2022 but deteriorated again in 2023. The significant drop in the current ratio from 1.30 in 2020 to 0.77 in 2019 highlights a noticeable instability in the company's liquidity position over the years.
Overall, the downward trend in the current ratio over the past two years suggests a potential liquidity challenge for DTE Energy Co. It is crucial for the company to closely monitor its current asset management to ensure it can meet its short-term obligations efficiently and effectively.
Peer comparison
Dec 31, 2023