SM Energy Co (SM)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 0 | 616,164 | 444,998 | 332,716 | 10 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 789,950 | 633,812 | 598,584 | 889,327 | 583,739 |
| Cash ratio | 0.00 | 0.97 | 0.74 | 0.37 | 0.00 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($0K
+ $—K)
÷ $789,950K
= 0.00
The cash ratio of SM Energy Co has shown significant improvement over the years, starting at 0.00 in December 2020 and steadily increasing to 0.97 by December 2023. This indicates that the company's ability to cover its short-term liabilities with cash and cash equivalents has strengthened over this period. However, there was a drop back to 0.00 by December 2024, which raises concerns about the company's liquidity position at the end of that year. Overall, the trend in the cash ratio suggests that SM Energy Co has made efforts to bolster its liquidity, but fluctuations in the ratio warrant further investigation into the company's cash management practices.
Peer comparison
Dec 31, 2024