SM Quick Ratio Analysis

The quick ratio measures a company's ability to cover immediate liabilities with its most liquid assets, and at 0.52x, SM holds only $0.52 of cash and equivalents for every $1 of short-term debt.

This sits below the sector median of 0.72x, placing the company in the 33rd percentile among peers, meaning most competitors have stronger short-term liquidity. A year-over-year change is not available, but the quarter-over-quarter improvement of +62.5% (from 0.32x to 0.52x) shows a sharp near-term build-up in liquid assets. The still-low level relative to peers highlights ongoing liquidity risk, while the large QoQ jump suggests recent measures to bolster cash are having an effect. Because the level remains a weakness that offsets a positive recent trend, the metric does not clearly push the outlook either way. It supports the overall NEUTRAL verdict, as the liquidity position is neither strong enough to warrant bullishness nor deteriorating enough to raise a fresh red flag.

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