Norfolk Southern Corporation (NSC)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,641,000 | 1,568,000 | 456,000 | 839,000 | 1,115,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 3,590,000 |
| Total current liabilities | US$ in thousands | 3,545,000 | 2,632,000 | 2,649,000 | 2,521,000 | 2,160,000 |
| Cash ratio | 0.46 | 0.60 | 0.17 | 0.33 | 2.18 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,641,000K
+ $—K)
÷ $3,545,000K
= 0.46
The cash ratio of Norfolk Southern Corporation has exhibited fluctuations over the years. As of December 31, 2020, the company had a healthy cash ratio of 2.18, indicating a strong ability to cover its short-term liabilities with its cash and cash equivalents. However, by December 31, 2021, the cash ratio had decreased significantly to 0.33, suggesting a lower level of liquidity compared to the previous year.
Further decline was noted by December 31, 2022, with the cash ratio dropping to 0.17, raising concerns about the company's ability to meet its short-term obligations using its available cash resources. The following year, on December 31, 2023, there was a notable improvement in the cash ratio to 0.60, indicating a better liquidity position for Norfolk Southern Corporation.
By December 31, 2024, the cash ratio declined slightly to 0.46, still showing an improvement from the previous year but below the levels seen in the initial years of the analysis. Overall, fluctuations in the cash ratio of Norfolk Southern Corporation indicate varying degrees of liquidity risk and the company's ability to manage its short-term financial obligations efficiently.
Peer comparison
Dec 31, 2024