Norfolk Southern Corporation (NSC)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,641,000 | 975,000 | 659,000 | 652,000 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | 3,684,000 | 3,658,000 | 3,604,000 | 3,590,000 | — | — | — |
| Total current liabilities | US$ in thousands | 3,545,000 | 3,677,000 | 3,667,000 | 3,447,000 | 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 |
| Cash ratio | 0.46 | 0.27 | 0.18 | 0.19 | 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 |
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 experienced fluctuations over the years, ranging from 0.17 to 2.18. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.
From December 31, 2020 to September 30, 2021, the cash ratio showed a significant increase from 2.18 to 2.14, indicating a strong ability to cover short-term obligations with cash. However, by December 31, 2021, the ratio dropped to 0.33, suggesting a decrease in the company's liquidity position.
The ratio fluctuated further in the following periods, with values ranging between 0.17 and 0.60. While the ratio remained below 1 in most quarters, indicating that the company may have challenges in covering its short-term liabilities solely with cash, it did show some improvement in liquidity in certain quarters.
Overall, the analysis of Norfolk Southern Corporation's cash ratio suggests that the company may face fluctuations in its liquidity position, highlighting the importance of effectively managing cash flows and working capital to ensure the ability to meet short-term obligations.
Peer comparison
Dec 31, 2024