DT Midstream Inc (DTM)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Cash | US$ in thousands | 56,000 | 61,000 | 132,000 |
| Short-term investments | US$ in thousands | — | — | 1,691,000 |
| Receivables | US$ in thousands | 173,000 | 161,000 | 173,000 |
| Total current liabilities | US$ in thousands | 434,000 | 614,000 | 177,000 |
| Quick ratio | 0.53 | 0.36 | 11.28 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($56,000K
+ $—K
+ $173,000K)
÷ $434,000K
= 0.53
The quick ratio of DT Midstream Inc has shown significant fluctuations over the past four years, indicating varying levels of liquidity. In 2023, the quick ratio stands at 0.63, an improvement from the previous year's 0.43. This suggests that the company has increased its ability to meet its short-term obligations using its most liquid assets. Despite the improvement, the quick ratio remains below 1, indicating a potential liquidity concern if the company were to face a sudden demand for cash. Comparing to 2021 where the quick ratio was notably higher at 2.03, the company had considerably more liquid assets relative to current liabilities. In contrast, the quick ratio was only 0.15 in 2020, reflecting a minimal ability to cover short-term liabilities with liquid assets. Overall, while there has been improvement in 2023, DT Midstream Inc may still need to focus on enhancing its liquidity position to ensure better short-term financial stability.
Peer comparison
Dec 31, 2023