Norfolk Southern Corporation (NSC)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,271,000 | 3,142,000 | 2,031,000 | 2,122,000 | 2,007,000 | 2,715,000 | 2,857,000 | 3,015,000 | 2,167,000 | 2,722,000 | 3,012,000 | 2,303,000 | 2,318,000 | 2,579,000 | 2,350,000 | 2,002,000 | 2,081,000 | 2,016,000 | 1,914,000 | 1,922,000 |
| 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 |
| Current ratio | 1.24 | 1.08 | 0.68 | 0.75 | 0.76 | 0.97 | 1.10 | 0.96 | 0.86 | 1.13 | 1.08 | 1.02 | 1.07 | 1.29 | 1.21 | 0.90 | 0.90 | 0.73 | 0.78 | 0.67 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,271,000K ÷ $2,632,000K
= 1.24
Norfolk Southern Corp.'s current ratio has displayed fluctuations over the past eight quarters. The current ratio measures a company's ability to pay its short-term obligations with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities.
In the most recent quarter, Q4 2023, Norfolk Southern Corp. had a current ratio of 1.24, suggesting that the company had $1.24 in current assets for every $1 in current liabilities. This indicates a healthy liquidity position, which may suggest that Norfolk Southern Corp. is well-positioned to meet its short-term financial obligations.
Comparing this to previous quarters, we see that the current ratio has varied significantly, ranging from 0.68 in Q2 2023 to 1.10 in Q3 2022. The decreasing trend from Q2 2023 to Q4 2023 may have been concerning, but the company's current ratio rebounded in the most recent quarter.
Overall, while the current ratio of Norfolk Southern Corp. has fluctuated, the most recent quarter's ratio of 1.24 indicates a reassuring liquidity position. Investors and analysts may want to continue monitoring the company's current ratio in future quarters to assess its ongoing financial health and ability to meet short-term obligations.
Peer comparison
Dec 31, 2023