Kinder Morgan Inc (KMI)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents US$ in thousands 83,000 745,000 1,140,000 1,184,000 185,000
Short-term investments US$ in thousands 1,000 113,000 0 925,000
Total current liabilities US$ in thousands 7,221,000 6,930,000 5,821,000 5,074,000 5,100,000
Cash ratio 0.01 0.11 0.22 0.23 0.22

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($83,000K + $—K) ÷ $7,221,000K
= 0.01

The cash ratio for Kinder Morgan Inc has been declining over the past five years, starting at 0.29 in 2019 and decreasing to 0.06 in 2023. This trend indicates that the company may have less ability to cover its short-term liabilities with its available cash and cash equivalents. A cash ratio of less than 1 suggests that the company may have difficulties meeting its short-term obligations if they all came due at once.

A lower cash ratio could signal potential liquidity challenges for Kinder Morgan Inc, as it may not have enough readily available cash to cover its immediate financial obligations. It is important for the company to closely monitor its cash position and ensure that it maintains a healthy level of liquidity to meet its short-term needs. Further analysis of the company's overall financial health and cash management practices would be beneficial to fully assess the implications of the declining trend in the cash ratio.


Peer comparison

Dec 31, 2023


See also:

Kinder Morgan Inc Cash Ratio