SM Energy Co (SM)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 10 | 10 | 12 | 14 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 472,043 | 491,042 | 503,945 | 545,342 |
| Cash ratio | 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 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($616,164K
+ $—K)
÷ $633,812K
= 0.97
The cash ratio of SM Energy Co has fluctuated over the past eight quarters, ranging from a low of 0.30 in Q2 2022 to a high of 1.08 in Q4 2023. The cash ratio measures the company's ability to cover its current liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position, as the company has more cash on hand relative to its short-term obligations.
In Q4 2023, SM Energy Co had a cash ratio of 1.08, indicating that it had more than enough cash to cover its current liabilities. This could be seen as a positive sign of financial strength and stability. However, the company's cash ratio dropped to 0.73 in Q3 2023 before rebounding to 0.82 in Q2 2023 and further increasing to 1.01 in Q1 2023.
On the other hand, the company experienced lower cash ratios in the earlier quarters, with ratios of 0.84 in Q4 2022, 0.68 in Q3 2022, and a significant drop to 0.30 in Q2 2022, indicating potential liquidity challenges during that period. However, the cash ratio improved to 0.41 in Q1 2022, showing some recovery.
Overall, the trend in SM Energy Co's cash ratio indicates variability in its liquidity position over the past two years. It would be important to continue monitoring the company's cash ratio to assess its ability to meet short-term obligations and maintain financial stability.
Peer comparison
Dec 31, 2023