CSX Corporation (CSX)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.86 | 1.39 | 1.16 | 1.15 | 1.05 | 1.14 | 1.42 | 1.45 | 1.56 | 1.72 | 1.16 | 1.46 | 1.73 | 1.72 | 2.34 | 2.39 | 2.20 | 1.84 | 1.62 | 1.73 |
| Quick ratio | 0.31 | 0.64 | 0.45 | 0.49 | 0.45 | 0.49 | 0.50 | 0.63 | 0.84 | 0.96 | 0.34 | 0.79 | 1.04 | 1.87 | 1.53 | 1.64 | 1.55 | 1.26 | 1.11 | 1.12 |
| Cash ratio | 0.31 | 0.64 | 0.45 | 0.49 | 0.45 | 0.49 | 0.50 | 0.63 | 0.84 | 0.96 | 0.34 | 0.79 | 1.04 | 1.87 | 1.53 | 1.64 | 1.55 | 1.26 | 1.11 | 1.12 |
CSX Corporation's liquidity ratios have shown mixed performance over the past few years. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has fluctuated within a range of 1.05 to 2.39. While the current ratio peaked at 2.39 on March 31, 2021, indicating a strong ability to meet short-term liabilities, it decreased to 0.86 by December 31, 2024, suggesting potential liquidity challenges at that point in time.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also displayed variability, ranging from 0.31 to 1.87. The quick ratio hit its lowest point at 0.31 on December 31, 2024, signaling a decline in the company's ability to meet immediate obligations without relying on inventory.
The cash ratio, which reflects the proportion of cash and cash equivalents to cover current liabilities, has shown similar trends to the quick ratio, indicating a decrease in liquidity over time. For example, the cash ratio dropped to 0.31 on December 31, 2024, implying that CSX Corporation might have faced challenges in meeting its short-term obligations with cash on hand at that point.
Overall, while CSX Corporation's liquidity ratios have experienced fluctuations, it is essential for the company to carefully monitor and manage its liquidity position to ensure it can meet its financial obligations efficiently and effectively in the future.
See also:
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 16.44 | 16.41 | 16.46 | 17.88 | 17.83 | 17.15 | 17.04 | 15.70 | 13.73 | 15.09 | 16.47 | 16.37 | 16.77 | 16.02 | 16.24 | 17.39 | 17.72 | 14.51 | 13.65 | 13.54 |
The cash conversion cycle of CSX Corporation has shown fluctuations over the reported periods. The cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, provides insights into the efficiency of CSX's operations.
From March 2020 to December 2024, the cash conversion cycle varied between 13.54 days and 17.88 days. In general, a shorter cash conversion cycle indicates that the company is managing its working capital effectively and efficiently. Conversely, a longer cycle may suggest inefficiencies in inventory management, collections, or payment processes.
During the period analyzed, the cash conversion cycle peaked at 17.88 days in March 2024 and the lowest point was recorded at 13.54 days in March 2020. The cycle showed some volatility but generally remained within a relatively narrow range.
Overall, it is critical for CSX Corporation to monitor and manage its cash conversion cycle to ensure optimal cash flow efficiency and operational performance. By implementing strategies to streamline inventory turnover, accelerate receivables collection, and manage payables effectively, the company can enhance its financial health and competitiveness in the market.