KMI Quick Ratio Analysis

The quick ratio measures whether a company can pay its short-term bills using its most liquid assets—cash, marketable securities, and receivables—without selling inventory.

At 0.29x, KMI holds only $0.29 of these liquid assets for every $1 of current liabilities, meaning it may struggle to meet near-term obligations if cash inflows slow. That figure sits far below the sector median of 0.71x, placing KMI in the 13th percentile among peers. The year-over-year change is not available, but the quarter-over-quarter drop of -9.4% shows liquidity tightening from the prior 0.32x reading. A low and falling quick ratio implies elevated short-term liquidity risk, though it may also reflect a capital-intensive business model where steady cash flows offset the thin buffer. This metric supports the overall NEUTRAL verdict because it introduces a clear downside risk that tempers any positive case, while not being so extreme as to force a bearish call.

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