Kinder Morgan Inc (KMI)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 88,000 | 83,000 | 745,000 | 1,140,000 | 1,184,000 |
| Short-term investments | US$ in thousands | — | — | 1,000 | 113,000 | 0 |
| Receivables | US$ in thousands | 1,506,000 | 1,588,000 | 1,882,000 | 1,653,000 | 1,340,000 |
| Total current liabilities | US$ in thousands | 5,101,000 | 7,221,000 | 6,930,000 | 5,821,000 | 5,074,000 |
| Quick ratio | 0.31 | 0.23 | 0.38 | 0.50 | 0.50 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($88,000K
+ $—K
+ $1,506,000K)
÷ $5,101,000K
= 0.31
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. Looking at the historical data for Kinder Morgan Inc, we observe a consistent trend of the quick ratio decreasing over the years.
As of December 31, 2020, the quick ratio was 0.50, indicating that the company had $0.50 of liquid assets for every $1 of current liabilities. This ratio remained stable at 0.50 as of December 31, 2021.
However, there was a noticeable decline in the quick ratio to 0.38 as of December 31, 2022, suggesting a potential weakening in the company's ability to cover its short-term obligations.
The trend continued with a further decrease to 0.23 on December 31, 2023, indicating a more significant strain on the company's liquidity position.
While there was a slight improvement in the quick ratio to 0.31 as of December 31, 2024, the ratio is still lower compared to the previous years. Overall, the decreasing trend in the quick ratio raises concerns about Kinder Morgan Inc's short-term liquidity and its ability to meet its immediate payment obligations.
Peer comparison
Dec 31, 2024