Norfolk Southern Corporation (NSC)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,271,000 | 2,007,000 | 2,167,000 | 2,318,000 | 2,081,000 |
| Total current liabilities | US$ in thousands | 2,632,000 | 2,649,000 | 2,521,000 | 2,160,000 | 2,300,000 |
| Current ratio | 1.24 | 0.76 | 0.86 | 1.07 | 0.90 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,271,000K ÷ $2,632,000K
= 1.24
The current ratio of Norfolk Southern Corp. has fluctuated over the past five years, with a notable increase from 2022 to 2023. In 2023, the current ratio stands at 1.24, indicating that the company has $1.24 in current assets for every $1 in current liabilities.
In 2022, the current ratio was significantly lower at 0.76, signaling a potential liquidity issue as the company had only $0.76 in current assets for each $1 of current liabilities. This sharp increase in the current ratio from 2022 to 2023 suggests an improvement in the company's liquidity position.
Comparing the 2023 current ratio to the ratios from previous years, we can see that it is higher than in 2021 and 2019, indicating an enhanced ability to cover short-term obligations. However, it is lower than the ratio in 2020, which may suggest a slight decrease in liquidity compared to that year.
Overall, while the current ratio of Norfolk Southern Corp. has shown variability in recent years, the 2023 ratio of 1.24 indicates an improved liquidity position compared to the previous year and a more favorable ability to meet short-term liabilities.
Peer comparison
Dec 31, 2023