Kinder Morgan Inc (KMI)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,542,000 | 3,803,000 | 3,829,000 | 3,203,000 | 3,238,000 |
| Total current liabilities | US$ in thousands | 7,221,000 | 6,930,000 | 5,821,000 | 5,074,000 | 5,100,000 |
| Current ratio | 0.35 | 0.55 | 0.66 | 0.63 | 0.63 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,542,000K ÷ $7,221,000K
= 0.35
The current ratio of Kinder Morgan Inc has shown a declining trend over the past five years, from 0.63 in 2019 to 0.35 in 2023. This indicates a weakening liquidity position as the company's current assets are decreasing relative to its current liabilities. The current ratio below 1 suggests that the company may face challenges in meeting its short-term obligations with its current assets alone.
The significant drop in the current ratio from 2022 to 2023 raises concerns about the company's ability to cover its short-term liabilities with its current assets. Investors and creditors may view this as a red flag, indicating a potential strain on the company's liquidity position. It would be advisable for Kinder Morgan Inc to closely monitor its working capital management and financial health to ensure its ability to meet its short-term obligations in the future.
Peer comparison
Dec 31, 2023