DT Midstream Inc (DTM)
Cash ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 56,000 | 30,000 | 45,000 | 95,000 | 61,000 | 355,000 | 345,000 | 281,000 | 132,000 | 128,000 | 37,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | 1,691,000 | 1,687,000 | — |
| Total current liabilities | US$ in thousands | 434,000 | 424,000 | 361,000 | 698,000 | 614,000 | 249,000 | 180,000 | 188,000 | 177,000 | 195,000 | 107,000 |
| Cash ratio | 0.13 | 0.07 | 0.12 | 0.14 | 0.10 | 1.43 | 1.92 | 1.49 | 10.30 | 9.31 | 0.35 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($56,000K
+ $—K)
÷ $434,000K
= 0.13
The cash ratio for DT Midstream Inc has shown fluctuations over the past eight quarters. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.
In Q4 2023, the cash ratio decreased to 0.24 from 0.13 in Q3 2023, indicating that the company had a higher level of cash relative to its current liabilities. Although the ratio increased from the previous quarter, it remains lower compared to Q2 and Q1 2023.
The significant decrease in Q3 2023 from Q2 2023 raised red flags, as the cash ratio dropped from 0.18 to 0.13, hinting at potential liquidity challenges or increased short-term liabilities during that period.
Throughout the previous quarters in 2022, the cash ratio was considerably higher, particularly in Q3 and Q2 2022, when it stood at 1.54 and 2.10 respectively. These high values indicated strong liquidity and ability to cover short-term obligations comfortably.
Overall, the recent downward trend in the cash ratio for DT Midstream Inc warrants further analysis into the company's cash management practices, liquidity position, and the sustainability of its current operations.
Peer comparison
Dec 31, 2023