SM Energy Co (SM)

Current 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
Total current assets	US$ in thousands	434,699	2,044,430	774,228	793,045	916,439	702,552	678,985	756,276	737,203	807,778	633,133	758,835	613,187	336,270	269,410	230,282	203,669	274,890	355,469	625,160
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
Current ratio		0.55	3.52	1.29	1.48	1.45	1.17	1.20	1.34	1.23	0.99	0.62	0.72	0.69	0.30	0.26	0.30	0.35	0.73	1.15	1.63

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 fluctuated over the past few years, ranging from a low of 0.26 on June 30, 2021, to a high of 3.52 on September 30, 2024. The current ratio measures the company's ability to cover its short-term liabilities with its short-term assets. A current ratio below 1 suggests that the company may have difficulty meeting its short-term obligations.

SM Energy Co experienced a significant drop in its current ratio from June 30, 2021, to September 30, 2021, indicating potential liquidity challenges during that period. However, the company's current ratio improved gradually through 2023 and 2024, reaching levels above 1, which is considered a healthier ratio.

The sudden spike in the current ratio to 3.52 on September 30, 2024, may raise questions about the accuracy of the financial data or significant changes in the company's asset and liability structure during that period. It would be advisable to further investigate the reasons behind such a drastic increase in the current ratio to ensure the company's financial health is accurately represented.