Norfolk Southern Corporation (NSC)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 1.03 | 0.93 | 0.55 | 0.61 | 0.61 | 0.85 | 0.95 | 0.84 | 0.72 | 2.53 | 2.24 | 2.47 | 2.57 | 1.12 | 1.02 | 0.67 | 0.65 | 0.52 | 0.54 | 0.51 |
| 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 |
The current ratio of Norfolk Southern Corp. has shown some volatility in recent quarters, ranging from 0.68 to 1.24. This ratio indicates the company's ability to cover its short-term obligations with its current assets. While the current ratio has improved in the latest quarter, it still remains below 1, suggesting potential liquidity concerns.
The quick ratio of Norfolk Southern Corp. has also fluctuated over the quarters, with values ranging from 0.59 to 1.14. This ratio provides a more stringent measure of liquidity by excluding inventory from current assets. Similar to the current ratio, the quick ratio has improved in the latest quarter but remains relatively low, indicating limited ability to meet short-term obligations without relying on inventory liquidation.
The cash ratio of Norfolk Southern Corp. has displayed significant variability, ranging from 0.22 to 0.71. This ratio measures the company's ability to cover its short-term liabilities with cash and cash equivalents only. The cash ratio has also improved in the most recent quarter but remains at a relatively low level, implying potential difficulties in servicing immediate debt obligations solely with available cash.
Overall, the liquidity ratios of Norfolk Southern Corp. suggest that the company may face challenges in meeting its short-term financial obligations without additional sources of liquidity. It would be advisable for the company to closely monitor and manage its working capital to enhance its liquidity position and ensure financial stability in the future.
See also:
Norfolk Southern Corporation Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 conversion cycle | days | -87.06 | -70.54 | -67.77 | -56.56 | -57.08 | -76.10 | -62.79 | -61.17 | -91.57 | -76.77 | -69.08 | -63.10 | -65.64 | -85.93 | -80.47 | -72.03 | -82.58 | -68.48 | -65.30 | -61.00 |
The cash conversion cycle of Norfolk Southern Corp. has shown variations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 34.44 days, a slight improvement from the previous quarter. This indicates that Norfolk Southern Corp. took on average 34.44 days to convert its investments in inventory and other resources into cash receipts.
Comparing to the same quarter in the previous year, Q4 2022, Norfolk Southern Corp.'s cash conversion cycle has remained relatively stable. However, the company did manage to reduce its cash conversion cycle in Q2 2023 to 31.32 days, which was the most efficient performance in the past two years.
Overall, Norfolk Southern Corp. has been able to effectively manage its cash conversion cycle, with fluctuations seen throughout the quarters but maintaining a relatively consistent level. A lower cash conversion cycle indicates that the company is efficiently managing its working capital, while a longer cycle may suggest inefficiencies that could impact the company's liquidity and profitability.