Southwest Gas Holdings Inc (SWX)
Cash 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 106,536 | 104,939 | 221,367 | 82,085 | 123,078 | 175,272 | 215,963 | 624,666 | 222,697 | 186,690 | 47,565 | 92,345 | 83,352 | 23,945 | 199,591 | 60,965 | 49,539 | 28,480 | 38,446 | 97,037 |
| Short-term investments | US$ in thousands | — | 1,254,060 | 1,267,760 | 1,250,330 | — | 1,311,330 | 1,312,700 | 1,313,290 | — | 1,305,330 | 860,701 | 842,672 | — | 825,069 | 809,111 | 785,522 | — | 768,685 | 127,211 | 716,722 |
| Total current liabilities | US$ in thousands | 1,684,850 | 1,052,530 | 1,057,410 | 1,610,490 | 3,422,960 | 1,313,730 | 2,350,420 | 2,630,200 | 3,112,050 | 1,355,230 | 1,272,400 | 1,036,040 | 911,967 | 839,222 | 918,017 | 979,815 | 1,079,860 | 782,344 | 726,504 | 974,478 |
| Cash ratio | 0.06 | 1.29 | 1.41 | 0.83 | 0.04 | 1.13 | 0.65 | 0.74 | 0.07 | 1.10 | 0.71 | 0.90 | 0.09 | 1.01 | 1.10 | 0.86 | 0.05 | 1.02 | 0.23 | 0.84 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($106,536K
+ $—K)
÷ $1,684,850K
= 0.06
The cash ratio of Southwest Gas Holdings Inc has fluctuated over the past eight quarters, ranging from a low of 0.29 in Q4 2022 to a high of 1.16 in Q2 2023. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.
In general, a cash ratio above 1 is considered healthy, as it means the company has more than enough cash to cover its current liabilities. Southwest Gas Holdings Inc's cash ratio has shown improvement over the quarters, with an increase from 0.52 in Q4 2023 to 0.78 in Q1 2023, suggesting a better ability to meet short-term obligations.
However, it's worth noting that a cash ratio that is too high may indicate an inefficient use of resources, as cash sitting idle does not generate returns. Therefore, it is important for Southwest Gas Holdings Inc to strike a balance between maintaining a healthy cash position and investing excess cash to generate higher returns for the company and its shareholders.
Peer comparison
Dec 31, 2023