Norfolk Southern Corporation (NSC)

Cash ratio

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash and cash equivalents US$ in thousands 1,568,000 1,506,000 556,000 552,000 456,000 1,214,000 1,259,000 1,571,000 839,000 1,465,000 1,670,000 998,000 1,115,000 1,359,000 1,143,000 608,000 580,000 452,000 274,000 411,000
Short-term investments US$ in thousands 3,684,000 3,658,000 3,604,000 3,590,000
Total current liabilities US$ in thousands 2,632,000 2,914,000 2,986,000 2,824,000 2,649,000 2,798,000 2,609,000 3,147,000 2,521,000 2,410,000 2,796,000 2,249,000 2,160,000 2,005,000 1,935,000 2,236,000 2,300,000 2,761,000 2,451,000 2,885,000
Cash ratio 0.60 0.52 0.19 0.20 0.17 0.43 0.48 0.50 0.33 2.14 1.91 2.05 2.18 0.68 0.59 0.27 0.25 0.16 0.11 0.14

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. shows fluctuations over the past eight quarters. The ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.

In Q4 2023, Norfolk Southern Corp.'s cash ratio was 0.71, indicating that the company had $0.71 in cash and cash equivalents for every dollar of current liabilities. This suggests a relatively strong liquidity position compared to the previous quarters.

Looking back at the trend, the cash ratio has been volatile over the past two years. In Q2 2023 and Q1 2023, the ratio was particularly low at 0.22 and 0.24, respectively, indicating a struggle to cover short-term obligations with available cash. This may raise concerns about the company's liquidity position during those periods.

On the other hand, Q3 2022 and Q2 2022 had relatively higher cash ratios of 0.52 and 0.53, respectively, showing improved liquidity compared to the recent quarters.

Overall, fluctuations in the cash ratio of Norfolk Southern Corp. suggest varying abilities to meet short-term obligations with cash on hand. Investors and stakeholders may want to closely monitor these trends to assess the company's liquidity risk.


Peer comparison

Dec 31, 2023

Company name
Symbol
Cash ratio
Norfolk Southern Corporation
NSC
0.60
CSX Corporation
CSX
0.45
Union Pacific Corporation
UNP
0.21

See also:

Norfolk Southern Corporation Cash Ratio (Quarterly Data)