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