CSX Corporation (CSX)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,353,000 | 1,958,000 | 2,239,000 | 3,129,000 | 958,000 |
| Short-term investments | US$ in thousands | 83,000 | 129,000 | 77,000 | 2,000 | 996,000 |
| Receivables | US$ in thousands | 1,393,000 | 1,313,000 | 1,148,000 | 912,000 | 986,000 |
| Total current liabilities | US$ in thousands | 3,224,000 | 2,471,000 | 2,233,000 | 2,019,000 | 2,151,000 |
| Quick ratio | 0.88 | 1.38 | 1.55 | 2.00 | 1.37 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,353,000K
+ $83,000K
+ $1,393,000K)
÷ $3,224,000K
= 0.88
The quick ratio of CSX Corp. has been fluctuating over the past five years, ranging from a low of 0.91 in 2023 to a high of 2.05 in 2020. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
A quick ratio of less than 1 implies that the company may have difficulty meeting its short-term liabilities with its liquid assets alone. The declining trend in the quick ratio from 2020 to 2023 may suggest a weakening liquidity position, indicating potential challenges in covering immediate financial obligations.
It is important for investors and analysts to closely monitor the fluctuations in the quick ratio of CSX Corp. to assess the company's liquidity position and ability to remain financially stable in the short term. Further analysis of the company's financial statements and liquidity management strategies may be warranted to understand the underlying factors driving the changes in the quick ratio over time.
Peer comparison
Dec 31, 2023