DT Midstream Inc (DTM)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | Mar 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.73 | 0.95 | 0.84 | 0.71 | 0.63 | 0.47 | 0.58 | 0.36 | 0.43 | 2.14 | 2.86 | 2.35 | 2.03 | 1.59 | 1.68 | 2.30 | 0.01 |
| Quick ratio | 0.16 | 0.31 | 0.24 | 0.13 | 0.13 | 0.07 | 0.12 | 0.14 | 0.10 | 1.43 | 1.92 | 1.49 | 10.30 | 9.31 | 0.35 | 0.36 | 0.01 |
| Cash ratio | 0.16 | 0.31 | 0.24 | 0.13 | 0.13 | 0.07 | 0.12 | 0.14 | 0.10 | 1.43 | 1.92 | 1.49 | 10.30 | 9.31 | 0.35 | 0.36 | 0.01 |
Based on the provided data, DT Midstream Inc's liquidity ratios show fluctuations over the years. The current ratio, which measures the company's ability to cover its short-term liabilities with current assets, ranged from a low of 0.01 at the end of 2020 to a high of 2.86 at the end of June 2022. However, the ratio decreased to 0.73 at the end of December 2024, indicating a potential risk of liquidity problems.
The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, shows a similar trend with values ranging from 0.01 to 10.30 over the same period. Despite some fluctuations, the quick ratio generally remained above 1, suggesting that the company could meet its short-term obligations without relying heavily on inventory.
The cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents, also exhibited variability, ranging from 0.01 to 10.30. This indicates that DT Midstream Inc had a significant amount of cash on hand relative to its current liabilities at certain points in time.
Overall, while the company's liquidity ratios have shown some volatility, maintaining a strong cash position relative to its liabilities is essential to ensure DT Midstream Inc can meet its financial obligations in the short term.
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | Mar 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 4.94 | 8.92 | 13.70 | 17.61 | 8.60 | 16.36 | 30.55 | 42.25 | 20.28 | 47.61 | 0.00 | 0.00 |
The cash conversion cycle of DT Midstream Inc shows fluctuations over the periods analyzed, indicating the efficiency of the company in managing its cash flow related to operations. Initially, the cash conversion cycle was at its peak at 47.61 days on June 30, 2021, suggesting a longer period required to convert raw materials into cash. Subsequently, there was improvement as the cycle decreased to 8.60 days on September 30, 2022, indicating a more efficient conversion process.
During the following periods, the cash conversion cycle generally remained low, indicating that DT Midstream Inc was able to efficiently manage its working capital and convert inventory into cash swiftly. By December 31, 2023, and onwards, the cash conversion cycle returned to 0.00 days, indicating an optimal cash flow management process where the company was able to convert its investments in inventory back into cash quickly. This trend suggests a positive efficiency in managing inventory, accounts receivable, and accounts payable during the given periods.