SM Energy Co (SM)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 0 | 1,735,310 | 487,869 | 506,252 | 616,164 | 401,980 | 378,238 | 477,869 | 444,998 | 498,435 | 267,089 | 419,887 | 332,716 | 29,800 | 0 | 0 | 10 | 10 | 10 | 15 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 789,950 | 581,099 | 601,785 | 536,084 | 633,812 | 599,084 | 563,988 | 563,146 | 598,584 | 814,017 | 1,013,750 | 1,058,720 | 889,327 | 1,103,570 | 1,051,670 | 776,619 | 583,739 | 377,278 | 307,900 | 383,463 |
| Cash ratio | 0.00 | 2.99 | 0.81 | 0.94 | 0.97 | 0.67 | 0.67 | 0.85 | 0.74 | 0.61 | 0.26 | 0.40 | 0.37 | 0.03 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 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 a fluctuating trend over the past few years, as per the provided data. The cash ratio was consistently at a very low level of 0.00 from March 2020 to June 2024, indicating that the company had minimal cash reserves relative to its current liabilities during this period.
However, there was a significant improvement in the cash ratio as of September 30, 2024, with a sharp increase to 2.99. This sudden spike in the cash ratio suggests that the company substantially increased its cash holdings compared to its short-term obligations at the end of September 2024.
It is important to note that the cash ratio is a liquidity metric that measures the proportion of a company's current assets held in cash or cash equivalents to cover its current liabilities. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of funding.
Further analysis beyond the provided data is needed to understand the reasons behind the fluctuations in SM Energy Co's cash ratio and to evaluate the company's overall liquidity position and financial health effectively.
Peer comparison
Dec 31, 2024