DT Midstream Inc (DTM)
Quick 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 | 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 | — |
| Receivables | US$ in thousands | 173,000 | 150,000 | 148,000 | 122,000 | 161,000 | 150,000 | 137,000 | 119,000 | 173,000 | 150,000 | 112,000 |
| 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 |
| Quick ratio | 0.53 | 0.42 | 0.53 | 0.31 | 0.36 | 2.03 | 2.68 | 2.13 | 11.28 | 10.08 | 1.39 |
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 fluctuation over the past eight quarters. For Q4 2023, the quick ratio stood at 0.63, indicating that the company had $0.63 of liquid assets available to cover each $1 of current liabilities. This represents an improvement from the previous quarter (Q3 2023) when the quick ratio was 0.47. However, compared to Q2 2023 and Q1 2023 where the quick ratios were 0.58 and 0.36 respectively, there has been some volatility in the company's ability to meet its short-term obligations using its liquid assets.
It is noteworthy that in Q4 2022, the quick ratio was substantially higher at 2.14, and in the preceding quarters (Q3 2022, Q2 2022, Q1 2022) it ranged from 2.35 to 2.86. This indicates a significant decline in the company's liquidity position over the recent quarters, possibly suggesting potential challenges in meeting short-term obligations with its available liquid assets.
Overall, the quick ratio of DT Midstream Inc has experienced fluctuations, with a notable decrease in liquidity from previous periods. Further analysis of the company's financial health and operational efficiency may be warranted to understand the reasons behind these fluctuations and assess any potential risks associated with its liquidity position.
Peer comparison
Dec 31, 2023