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