Norfolk Southern Corporation (NSC)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,568,000 | 456,000 | 839,000 | 1,115,000 | 580,000 |
| Short-term investments | US$ in thousands | — | — | — | 3,590,000 | — |
| Receivables | US$ in thousands | 1,147,000 | 1,148,000 | 976,000 | 848,000 | 920,000 |
| Total current liabilities | US$ in thousands | 2,632,000 | 2,649,000 | 2,521,000 | 2,160,000 | 2,300,000 |
| Quick ratio | 1.03 | 0.61 | 0.72 | 2.57 | 0.65 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,568,000K
+ $—K
+ $1,147,000K)
÷ $2,632,000K
= 1.03
The quick ratio of Norfolk Southern Corp. has fluctuated over the past five years, indicating varying levels of liquidity to cover short-term obligations. In 2023, the quick ratio improved to 1.14, suggesting that the company had $1.14 in liquid assets available to cover each $1 of current liabilities. This indicates a stronger liquidity position compared to the previous year.
In 2022, the quick ratio was 0.66, reflecting a decrease in liquidity compared to the prior year. However, the ratio improved in 2021 to 0.77 before increasing again in 2020 to 0.97. The quick ratio was at 0.80 in 2019.
Overall, the quick ratio trend indicates that Norfolk Southern Corp. has experienced fluctuations in its ability to meet short-term obligations using its most liquid assets. It is essential for investors and stakeholders to monitor these liquidity trends to assess the company's financial health and ability to manage upcoming financial obligations.
Peer comparison
Dec 31, 2023