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

Company name
Symbol
Cash ratio
Norfolk Southern Corporation
NSC
0.46
CSX Corporation
CSX
0.45
Union Pacific Corporation
UNP
0.20

See also:

Norfolk Southern Corporation Cash Ratio