SM Energy Co (SM)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 434,699 | 916,439 | 737,203 | 613,187 | 203,669 |
| Total current liabilities | US$ in thousands | 789,950 | 633,812 | 598,584 | 889,327 | 583,739 |
| Current ratio | 0.55 | 1.45 | 1.23 | 0.69 | 0.35 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $434,699K ÷ $789,950K
= 0.55
The current ratio of SM Energy Co has shown significant improvement over the years, increasing from 0.35 as of December 31, 2020, to 1.45 as of December 31, 2023. This indicates a strengthening liquidity position as the company's current assets are more than sufficient to cover its current liabilities. However, there was a slight decline in the current ratio to 0.55 as of December 31, 2024, which suggests a possible strain on the company's short-term liquidity. It would be important for SM Energy Co to closely monitor its current assets and liabilities to ensure sustainable liquidity levels going forward.
Peer comparison
Dec 31, 2024