DT Midstream Inc (DTM)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 310,000 | 272,000 | 262,000 | 360,000 | 483,000 |
| Total current liabilities | US$ in thousands | 321,000 | 434,000 | 614,000 | 177,000 | 3,288,000 |
| Current ratio | 0.97 | 0.63 | 0.43 | 2.03 | 0.15 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $310,000K ÷ $321,000K
= 0.97
The current ratio of DT Midstream Inc has shown significant fluctuations over the past five years. As of December 31, 2020, the company had a very low current ratio of 0.15, indicating a potential liquidity issue and a higher risk of short-term financial distress. However, by December 31, 2021, the current ratio improved substantially to 2.03, signaling a much healthier liquidity position with more than enough current assets to cover current liabilities.
Subsequently, the current ratio decreased to 0.43 by December 31, 2022, suggesting a potential return to a less favorable liquidity position. However, the ratio increased to 0.63 by December 31, 2023, indicating a slight improvement in the company's ability to meet short-term obligations.
As of December 31, 2024, DT Midstream Inc's current ratio further improved to 0.97, showing continued progress in liquidity management but still below the ideal ratio of 2. This performance suggests that the company may be working towards enhancing its working capital management and strengthening its ability to meet short-term liabilities.
Peer comparison
Dec 31, 2024