Summit Midstream has a quick ratio of 0.68. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Summit Midstream's Quick Ratio or its related term are showing as below:
SMC'
s Quick Ratio Range Over the Past 10 Years
Min: 0.68 Med: 1.12 Max: 1.56
Current: 0.68
During the past 13 years, Summit Midstream's highest Quick Ratio was 1.56. The lowest was 0.68. And the median was 1.12.
SMC's Quick Ratio is ranked worse than 75.05% of 1030
companies
in the Oil & Gas industry
Industry Median: 1.17
vs SMC: 0.68
Summit Midstream Quick Ratio Historical Data
The historical data trend for Summit Midstream's Quick Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Summit Midstream's Quick Ratio
For the Oil & Gas Midstream subindustry, Summit Midstream's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Summit Midstream's Quick Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Summit Midstream's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Summit Midstream's Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Summit Midstream's Quick Ratio for the fiscal year that ended in Dec. 2024 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Summit Midstream (NYSE:SMC) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Summit Midstream Quick Ratio Related Terms
Thank you for viewing the detailed overview of Summit Midstream's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Summit Midstream Corp is a value-driven corporation focused on developing, owning and operating midstream energy infrastructure assets strategically located in unconventional resource basins, shale formations, in the continental U.S. It currently operates natural gas, crude oil and produced water gathering systems in four unconventional resource basins: the Williston Basin in North Dakota, which includes the Bakken and Three Forks shale formations; the Denver-Julesburg Basin, which includes the Niobrara and Codell shale formations in Colorado and Wyoming; the Fort Worth Basin in Texas, which includes the Barnett Shale formation; and the Piceance Basin in Colorado, which includes the liquids-rich Mesaverde formation as well as the emerging Mancos and Niobrara Shale formations.
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