The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Energy Transfer LP's current ratio for the quarter that ended in Dec. 2023 was 1.10.
Energy Transfer LP has a current ratio of 1.10. It generally indicates good short-term financial strength.
The historical rank and industry rank for Energy Transfer LP's Current Ratio or its related term are showing as below:
ET'
s Current Ratio Range Over the Past 10 Years
Min: 0.73 Med: 1.02 Max: 1.35
Current: 1.1
During the past 13 years, Energy Transfer LP's highest Current Ratio was 1.35. The lowest was 0.73. And the median was 1.02.
ET's Current Ratio is ranked worse than 62.55% of 1076
companies
in the Oil & Gas industry
Industry Median: 1.34
vs ET: 1.10
Energy Transfer LP Current Ratio Historical Data
The historical data trend for Energy Transfer LP's Current 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 Energy Transfer LP's Current Ratio
For the Oil & Gas Midstream subindustry, Energy Transfer LP's Current Ratio, along with its competitors' market caps and Current 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.
Energy Transfer LP's Current Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Energy Transfer LP's Current Ratio distribution charts can be found below:
* The bar in red indicates where Energy Transfer LP's Current Ratio falls into.
Energy Transfer LP Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
Energy Transfer LP's Current Ratio for the fiscal year that ended in Dec. 2023 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.
Energy Transfer LP (NYSE:ET) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Energy Transfer LP Current Ratio Related Terms
Thank you for viewing the detailed overview of Energy Transfer LP's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Energy Transfer LP (Energy Transfer LP) Business Description
Energy Transfer owns a large platform of crude oil, natural gas, and natural gas liquid assets primarily in Texas and the U.S. midcontinent region. It also has gathering and processing facilities, one of the largest fractionation facilities in the U.S., and fuel distribution. Energy Transfer also owns the Lake Charles gas liquefaction facility. It combined its publicly traded limited and general partnerships in October 2018.
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