Southwest Gas Holdings Inc (SWX)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 363,789 | 106,536 | 123,078 | 222,697 | 83,352 |
| Short-term investments | US$ in thousands | 1,191,150 | 1,266,340 | — | — | 152,748 |
| Total current liabilities | US$ in thousands | 1,832,100 | 1,684,850 | 3,422,960 | 3,112,050 | 911,967 |
| Cash ratio | 0.85 | 0.81 | 0.04 | 0.07 | 0.26 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($363,789K
+ $1,191,150K)
÷ $1,832,100K
= 0.85
The cash ratio of Southwest Gas Holdings Inc has displayed varying trends over the last five years. In December 2020, the company's cash ratio stood at 0.26, indicating that for every dollar of current liabilities, the company had $0.26 in cash or cash equivalents. However, this ratio decreased significantly to 0.07 by December 2021 and further dropped to 0.04 by December 2022, reflecting potential liquidity challenges during these periods.
The cash ratio saw a notable improvement in December 2023, surging to 0.81, signifying a substantial increase in the company's ability to cover its short-term obligations with its available cash reserves. This significant improvement suggests a more robust liquidity position for Southwest Gas Holdings Inc.
By December 2024, the cash ratio further improved to 0.85, indicating that the company had $0.85 in cash for every dollar of current liabilities, showcasing a strong liquidity position at the end of the period. The consistent enhancement in the cash ratio over the last two years reflects improved liquidity management and the company's ability to meet its short-term obligations with ease.
Overall, the cash ratio trend of Southwest Gas Holdings Inc highlights fluctuations in liquidity levels over the past five years, with a substantial recovery in recent years, positioning the company on a firmer ground in terms of meeting its short-term financial commitments.
Peer comparison
Dec 31, 2024