Southwest Gas Holdings Inc (SWX)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 363,789 | 456,643 | 599,639 | 457,952 | 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 |
| Short-term investments | US$ in thousands | — | 1,193,060 | 1,234,940 | 1,252,860 | 1,266,340 | 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 |
| Total current liabilities | US$ in thousands | 1,832,100 | 1,702,740 | 1,096,150 | 1,718,660 | 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 |
| Cash ratio | 0.20 | 0.97 | 1.67 | 1.00 | 0.81 | 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 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($363,789K
+ $—K)
÷ $1,832,100K
= 0.20
The cash ratio of Southwest Gas Holdings Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.
The cash ratio values for Southwest Gas Holdings Inc ranged from a low of 0.04 on December 31, 2022, to a high of 1.67 on June 30, 2024. A cash ratio below 1 indicates that the company may have difficulty meeting its short-term obligations if the need arises.
The company experienced a significant increase in its cash ratio from June 30, 2023, to June 30, 2024, suggesting a healthier liquidity position during that period. It is important to note that a very high cash ratio may imply that the company's cash holdings are not being efficiently utilized to generate returns or that the company is not effectively managing its cash flows to support its operations and growth initiatives.
Overall, an upward trend in the cash ratio indicates an improvement in the company's liquidity position, while a downward trend may raise concerns about the company's ability to meet its short-term financial obligations with its available cash reserves. Further analysis of Southwest Gas Holdings Inc's cash management practices and overall financial health would provide a more comprehensive understanding of its liquidity position.
Peer comparison
Dec 31, 2024