DT Midstream Inc (DTM)

Based on the provided data, we can observe the following trends in DT Midstream Inc's liquidity ratios over the past four years:

1. Current Ratio:
- The current ratio indicates the company's ability to meet short-term obligations with its current assets. A current ratio below 1 suggests that the company may have difficulty meeting its short-term liabilities.
- DT Midstream Inc's current ratio has fluctuated significantly, ranging from 0.15 in 2020 to 2.03 in 2021. This indicates that the company's short-term liquidity position has been volatile over the years.

2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. A quick ratio below 1 may raise concerns about the company's ability to cover its short-term obligations using its most liquid assets.
- Similar to the current ratio, DT Midstream Inc's quick ratio has shown significant fluctuations, ranging from 0.15 in 2020 to 2.03 in 2021. This indicates fluctuations in the company's ability to meet short-term obligations with its most liquid assets.

3. Cash Ratio:
- The cash ratio measures a company's ability to cover its current liabilities with cash and cash equivalents alone. A cash ratio below 1 suggests that the company may struggle to meet its short-term obligations using only cash resources.
- DT Midstream Inc's cash ratio has also fluctuated over the years, ranging from 0.03 in 2020 to 1.03 in 2021. The increase in the cash ratio in 2021 indicates an improvement in the company's ability to cover its short-term liabilities with cash reserves.

In summary, DT Midstream Inc's liquidity ratios have shown significant variability over the past four years, indicating fluctuations in the company's short-term liquidity position. Investors and stakeholders should closely monitor these ratios to assess the company's ability to meet its short-term obligations and manage liquidity risks effectively.

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Additional liquidity measure

DT Midstream Inc's cash conversion cycle has shown fluctuations over the past four years. In 2020, the cash conversion cycle was significantly high at 193.63 days, indicating that the company took a longer time to convert its investments in raw materials into cash from sales. However, there has been improvement in subsequent years, with the cycle decreasing to 77.35 days in 2021, further improving to 63.88 days in 2022, and then slightly increasing to 66.90 days in 2023.

A lower cash conversion cycle is generally considered favorable as it indicates that the company is efficiently managing its working capital and converting its assets into cash quickly. The decreasing trend from 2020 to 2022 suggests that DT Midstream Inc has been able to streamline its operations and collection processes, leading to a more efficient conversion cycle. The slight increase in 2023 may warrant further investigation to determine if it is due to changes in operational efficiency or external factors impacting the company's cash conversion cycle.