DT Midstream Inc (DTM)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 68,000 | 56,000 | 61,000 | 132,000 | 42,000 |
| Short-term investments | US$ in thousands | — | — | — | 1,691,000 | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 321,000 | 434,000 | 614,000 | 177,000 | 3,288,000 |
| Quick ratio | 0.21 | 0.13 | 0.10 | 10.30 | 0.01 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($68,000K
+ $—K
+ $—K)
÷ $321,000K
= 0.21
The quick ratio of DT Midstream Inc has shown significant fluctuations over the years based on the provided data. As of December 31, 2020, the quick ratio was extremely low at 0.01, indicating a potential liquidity issue as the company may struggle to meet its short-term obligations with its readily available liquid assets.
However, there was a substantial improvement in the quick ratio by December 31, 2021, as it increased to a high level of 10.30. This suggests that the company significantly strengthened its ability to cover its current liabilities with its quick assets, such as cash and marketable securities, in the following year.
The quick ratio dropped to 0.10 by December 31, 2022, signaling a decline in the company's liquidity position compared to the previous year. This decrease could potentially raise concerns about DT Midstream Inc's short-term financial health and its ability to meet immediate payment obligations.
Subsequently, by December 31, 2023, the quick ratio improved slightly to 0.13, indicating a modest enhancement in the company's liquidity position. However, the ratio remained relatively low, suggesting that DT Midstream Inc may still face challenges in fulfilling its short-term financial commitments.
Finally, as of December 31, 2024, the quick ratio increased further to 0.21, showing a continued improvement in the company's liquidity position compared to the previous year. While the ratio is still below industry standards, the upward trend suggests that DT Midstream Inc may be taking steps to enhance its liquidity and better manage its short-term obligations.
Peer comparison
Dec 31, 2024