Current Ratio
since 2010
Calculation
Kinder Morgan Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2019 | 0.63 | = | 3,238) | ÷ | 5,100) |
| Dec 31, 2018 | 0.76 | = | 5,722) | ÷ | 7,557) |
| Dec 31, 2017 | 0.44 | = | 2,715) | ÷ | 6,181) |
| Dec 31, 2016 | 0.55 | = | 3,229) | ÷ | 5,924) |
| Dec 31, 2015 | 0.69 | = | 2,824) | ÷ | 4,065) |
| Dec 31, 2014 | 0.59 | = | 3,752) | ÷ | 6,362) |
| Dec 31, 2013 | 0.64 | = | 3,868) | ÷ | 6,075) |
| Dec 31, 2012 | 0.71 | = | 3,674) | ÷ | 5,209) |
| Dec 31, 2011 | 0.37 | = | 1,663) | ÷ | 4,529) |
| Dec 31, 2010 | 0.49 | = | 1,787) | ÷ | 3,644) |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
1 US$ in millions
The current ratio for the period between 2010 and 2019 exhibits significant volatility, remaining consistently below the 1.0 threshold throughout the entire ten-year duration. This indicates a liquidity position where short-term obligations consistently exceed short-term assets, suggesting a structural reliance on revolving credit facilities or a strategic management of working capital common in capital-intensive industries.
- Liquidity Trends and Extremes
- The current ratio reached its minimum value of 0.37 in 2011 before recovering to 0.71 in 2012. Following this recovery, the ratio fluctuated between 0.44 and 0.69 from 2013 through 2017. The peak liquidity position was observed in 2018, when the ratio reached 0.76, before receding to 0.63 by the end of 2019.
- Current Asset Dynamics
- Current assets experienced a substantial increase between 2011 and 2012, rising from 1.66 billion US dollars to 3.67 billion US dollars. These assets generally fluctuated between 2.7 billion and 3.8 billion US dollars for most of the decade, with a notable outlier in 2018 when current assets peaked at 5.72 billion US dollars.
- Current Liability Trajectory
- Current liabilities showed a general upward trajectory for the majority of the period, growing from 3.64 billion US dollars in 2010 to a peak of 7.56 billion US dollars in 2018. Periodic reductions are observed, most notably in 2015, where liabilities dropped to 4.07 billion US dollars, and in 2019, where they decreased to 5.10 billion US dollars.
- Correlation Analysis
- The fluctuations in the current ratio appear to be driven by simultaneous shifts in both assets and liabilities. The 2018 peak in the current ratio was driven by the highest recorded levels of current assets, despite the period also containing the highest level of current liabilities. The consistent sub-1.0 ratio suggests a persistent gap in short-term coverage that did not fundamentally shift over the analyzed decade.
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Comparison to Competitors
Kinder Morgan Inc., current ratio, long-term trends, comparison to competitors
| Kinder Morgan Inc. | Chevron Corp. | ConocoPhillips | Exxon Mobil Corp. | |
|---|---|---|---|---|
| Dec 31, 2019 | 0.63 | 1.07 | 2.40 | 0.78 |
| Dec 31, 2018 | 0.76 | 1.25 | 1.79 | 0.84 |
| Dec 31, 2017 | 0.44 | 1.03 | 1.76 | 0.82 |
| Dec 31, 2016 | 0.55 | 0.93 | 1.25 | 0.87 |
| Dec 31, 2015 | 0.69 | 1.34 | 0.95 | 0.79 |
| Dec 31, 2014 | 0.59 | 1.32 | 1.31 | 0.82 |
| Dec 31, 2013 | 0.64 | 1.52 | 1.26 | 0.83 |
| Dec 31, 2012 | 0.71 | 1.63 | 1.38 | 1.01 |
| Dec 31, 2011 | 0.37 | 1.58 | 1.08 | 0.94 |
| Dec 31, 2010 | 0.49 | 1.68 | 1.26 | 0.94 |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
Comparison to Sector (Oil, Gas & Consumable Fuels)
Kinder Morgan Inc., current ratio, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Kinder Morgan Inc. | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Dec 31, 2019 | 0.63 | 0.98 |
| Dec 31, 2018 | 0.76 | 1.04 |
| Dec 31, 2017 | 0.44 | 0.97 |
| Dec 31, 2016 | 0.55 | 0.92 |
| Dec 31, 2015 | 0.69 | 0.97 |
| Dec 31, 2014 | 0.59 | 1.02 |
| Dec 31, 2013 | 0.64 | 1.07 |
| Dec 31, 2012 | 0.71 | 1.25 |
| Dec 31, 2011 | 0.37 | 1.12 |
| Dec 31, 2010 | 0.49 | 1.20 |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
Comparison to Industry (Energy)
Kinder Morgan Inc., current ratio, long-term trends, comparison to industry (energy)
| Kinder Morgan Inc. | Energy | |
|---|---|---|
| Dec 31, 2019 | 0.63 | 1.00 |
| Dec 31, 2018 | 0.76 | 1.06 |
| Dec 31, 2017 | 0.44 | 1.00 |
| Dec 31, 2016 | 0.55 | 1.02 |
| Dec 31, 2015 | 0.69 | 1.09 |
| Dec 31, 2014 | 0.59 | 1.10 |
| Dec 31, 2013 | 0.64 | 1.16 |
| Dec 31, 2012 | 0.71 | 1.31 |
| Dec 31, 2011 | 0.37 | 1.18 |
| Dec 31, 2010 | 0.49 | 1.24 |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).