Southwest Gas Holdings Inc (SWX)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,464,480 | 1,881,110 | 3,707,660 | 1,614,770 | 871,013 |
| Total current liabilities | US$ in thousands | 1,832,100 | 1,684,850 | 3,422,960 | 3,112,050 | 911,967 |
| Current ratio | 0.80 | 1.12 | 1.08 | 0.52 | 0.96 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,464,480K ÷ $1,832,100K
= 0.80
The current ratio for Southwest Gas Holdings Inc has shown fluctuations over the past five years. Starting at 0.96 in December 2020, the ratio decreased significantly to 0.52 by December 2021, indicating a potential liquidity issue. However, the company managed to improve its short-term liquidity position in the following years, reaching 1.08 by December 2022 and further increasing to 1.12 by December 2023. This improvement suggests better ability to meet its short-term obligations using current assets. Nevertheless, by December 2024, the current ratio decreased to 0.80, signaling a slight decline in short-term liquidity compared to the previous year. It is essential for Southwest Gas Holdings Inc to closely monitor its current ratio to ensure sufficient liquidity to cover its short-term liabilities in the future.
Peer comparison
Dec 31, 2024