DT Midstream Inc (DTM)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 68,000 | 56,000 | 61,000 | 132,000 | 42,000 |
| Short-term investments | US$ in thousands | — | — | — | 1,691,000 | — |
| Total current liabilities | US$ in thousands | 321,000 | 434,000 | 614,000 | 177,000 | 3,288,000 |
| Cash ratio | 0.21 | 0.13 | 0.10 | 10.30 | 0.01 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($68,000K
+ $—K)
÷ $321,000K
= 0.21
The cash ratio of DT Midstream Inc has shown significant fluctuations over the past five years. As of December 31, 2020, the cash ratio was extremely low at 0.01, indicating that the company had minimal cash reserves relative to its current liabilities. However, there was a substantial increase in the cash ratio to 10.30 by December 31, 2021, suggesting a considerable improvement in the company's liquidity position.
Subsequently, the cash ratio decreased to 0.10 by December 31, 2022, which may indicate a reduction in the company's ability to cover its short-term liabilities with its cash holdings. However, there was a slight uptick in the cash ratio to 0.13 by December 31, 2023, reflecting a modest improvement in liquidity.
By December 31, 2024, the cash ratio further improved to 0.21, indicating that DT Midstream Inc had a higher level of cash relative to its current liabilities compared to previous years. Overall, while the company experienced fluctuations in its cash ratio over the period, the upward trend in recent years suggests an enhancement in DT Midstream Inc's ability to meet its short-term obligations with its available cash resources.
Peer comparison
Dec 31, 2024