SM Energy Co (SM)

Quick 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	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	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	231,165	264,511	217,794	187,810	233,297	258,003	333,944	321,076	247,201	272,248	229,512	199,631	162,455	136,613	127,173	143,311	184,732	146,211	165,757	145,299
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
Quick ratio		1.34	1.11	1.06	1.18	1.13	0.93	0.59	0.70	0.65	0.27	0.22	0.26	0.28	0.36	0.41	0.37	0.39	0.30	0.33	0.27

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($616,164K + $—K + $231,165K) ÷ $633,812K
= 1.34

The quick ratio of SM Energy Co has shown fluctuations over the past eight quarters. The quick ratio measures the company's ability to cover its short-term obligations with its most liquid assets. A higher quick ratio indicates a stronger ability to meet short-term liabilities.

In Q4 2023, the quick ratio stood at 1.45, indicating the company had $1.45 in liquid assets for every $1 of short-term liabilities, suggesting a healthy liquidity position. This represents an improvement from the previous quarter's 1.17.

Looking back over the past quarters, there have been fluctuations in the quick ratio. The ratio has improved significantly since Q1 2022 when it was at 0.72. This improvement suggests that SM Energy Co has strengthened its liquidity position over the past eight quarters.

Although the quick ratio can fluctuate due to various factors such as changes in current assets or liabilities, overall, the upward trend in the quick ratio indicates an improvement in SM Energy Co's ability to meet its short-term obligations using its liquid assets.