Southwest Gas Holdings Inc (SWX)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,881,110 | 3,707,660 | 1,614,770 | 871,013 | 859,856 |
| Total current liabilities | US$ in thousands | 1,684,850 | 3,422,960 | 3,112,050 | 911,967 | 1,079,860 |
| Current ratio | 1.12 | 1.08 | 0.52 | 0.96 | 0.80 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,881,110K ÷ $1,684,850K
= 1.12
The current ratio of Southwest Gas Holdings Inc has shown significant fluctuations over the past five years. In 2023, the current ratio stands at 1.12, indicating that the company has $1.12 in current assets for every $1 in current liabilities. This suggests that Southwest Gas Holdings Inc is able to meet its short-term obligations comfortably.
Comparing this to the previous years, the current ratio has improved from 1.08 in 2022, which already indicated a strong liquidity position. However, the company experienced a significant decline in 2021 with a current ratio of 0.52, which may have raised concerns about its ability to cover its short-term liabilities.
The trend further shows an upward movement in 2020 and 2019, with current ratios of 0.96 and 0.80 respectively. Despite the fluctuations, the current ratio has been generally improving over the past few years, indicating that the company's liquidity position is strengthening.
Overall, Southwest Gas Holdings Inc's current ratio has shown volatility, with recent years demonstrating an improvement in its ability to meet short-term obligations. It is essential for the company to continue monitoring and managing its current assets and liabilities effectively to maintain a healthy liquidity position.
Peer comparison
Dec 31, 2023