Norfolk Southern Corporation (NSC)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,568,000 | 456,000 | 839,000 | 1,115,000 | 580,000 |
| Short-term investments | US$ in thousands | — | — | — | 3,590,000 | — |
| Total current liabilities | US$ in thousands | 2,632,000 | 2,649,000 | 2,521,000 | 2,160,000 | 2,300,000 |
| Cash ratio | 0.60 | 0.17 | 0.33 | 2.18 | 0.25 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,568,000K
+ $—K)
÷ $2,632,000K
= 0.60
The cash ratio of Norfolk Southern Corp. has shown significant fluctuations over the past five years. A higher cash ratio indicates a greater ability to cover short-term liabilities with cash and cash equivalents. In 2023, the cash ratio increased to 0.71 from 0.23 in 2022, signaling a substantial improvement in the company's liquidity position. This may suggest that Norfolk Southern Corp. has increased its cash reserves or reduced its short-term liabilities, enhancing its financial stability.
In 2021, the cash ratio decreased to 0.39 from 0.58 in 2020, reflecting a potential decrease in liquidity compared to the previous year. However, the cash ratio improved in 2020 compared to 2019 when it was 0.40, indicating a stronger liquidity position in 2020.
Overall, the fluctuation in Norfolk Southern Corp.'s cash ratio suggests varying levels of liquidity management over the years. Investors and stakeholders may monitor this ratio closely to assess the company's ability to meet its short-term obligations and manage cash effectively.
Peer comparison
Dec 31, 2023