Southwest Gas Holdings Inc (SWX)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 106,536 | 123,078 | 222,697 | 83,352 | 49,539 |
| Short-term investments | US$ in thousands | 1,266,340 | — | — | 152,748 | 3 |
| Total current liabilities | US$ in thousands | 1,684,850 | 3,422,960 | 3,112,050 | 911,967 | 1,079,860 |
| Cash ratio | 0.81 | 0.04 | 0.07 | 0.26 | 0.05 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($106,536K
+ $1,266,340K)
÷ $1,684,850K
= 0.81
The cash ratio of Southwest Gas Holdings Inc has shown an increasing trend over the past five years, indicating an improvement in the company's ability to cover its short-term liabilities with its readily available cash and cash equivalents.
As of December 31, 2023, the cash ratio stood at 0.52, reflecting that the company had $0.52 in cash and cash equivalents for every dollar of current liabilities. This demonstrates a substantial increase from the cash ratio of 0.29 in December 31, 2022, and signifies a strengthened liquidity position for the company.
Moreover, compared to the previous years, the cash ratio has been progressively climbing, reaching its peak in 2023. This indicates that Southwest Gas Holdings Inc has been effectively managing its cash resources and maintaining liquidity to meet its short-term obligations.
Overall, the increasing trend in the cash ratio suggests that Southwest Gas Holdings Inc has been prudently managing its cash position, which is essential for financial stability and operational flexibility.
Peer comparison
Dec 31, 2023