Norfolk Southern Corporation (NSC)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,188,000 | 3,271,000 | 2,007,000 | 2,167,000 | 2,318,000 |
| Total current liabilities | US$ in thousands | 3,545,000 | 2,632,000 | 2,649,000 | 2,521,000 | 2,160,000 |
| Current ratio | 0.90 | 1.24 | 0.76 | 0.86 | 1.07 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,188,000K ÷ $3,545,000K
= 0.90
The current ratio measures Norfolk Southern Corporation's ability to cover its short-term liabilities with its current assets. Over the past five years, the company's current ratio has varied significantly. Starting at 1.07 on December 31, 2020, the ratio decreased to 0.86 by December 31, 2021, indicating a potential liquidity challenge. The ratio further declined to 0.76 on December 31, 2022, raising concerns about the company's ability to meet its short-term obligations.
However, Norfolk Southern saw an improvement in its liquidity position in the following year, with the current ratio increasing to 1.24 on December 31, 2023, which is above the ideal level of 1. This improvement suggests a better ability to cover short-term liabilities. Nonetheless, by December 31, 2024, the current ratio decreased to 0.90, indicating a slight decline in liquidity from the previous year.
In conclusion, Norfolk Southern Corporation has experienced fluctuations in its current ratio over the years, signaling varying levels of liquidity. While the ratio improved in 2023, it slightly decreased in 2024, suggesting the need for continued monitoring of the company's short-term liquidity position.
Peer comparison
Dec 31, 2024