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