Southwest Gas Holdings Inc (SWX)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,832,100 | 1,684,850 | 3,422,960 | 3,112,050 | 911,967 |
| Quick ratio | 0.85 | 0.81 | 0.04 | 0.07 | 0.26 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($363,789K
+ $1,191,150K
+ $—K)
÷ $1,832,100K
= 0.85
The quick ratio of Southwest Gas Holdings Inc has shown significant fluctuations over the years. As of December 31, 2020, the quick ratio was relatively low at 0.26, indicating a limited ability to cover its short-term obligations with its most liquid assets.
However, by December 31, 2021, the quick ratio decreased further to a concerning 0.07, suggesting a significant liquidity challenge for the company during that period. The trend continued into December 31, 2022, with the quick ratio dropping to 0.04, signaling potential difficulties in meeting short-term financial commitments.
In a positive turn of events, by December 31, 2023, the quick ratio significantly improved to 0.81, indicating a healthier liquidity position for Southwest Gas Holdings Inc, as it had more liquid assets to cover its short-term liabilities.
This positive momentum continued into December 31, 2024, with the quick ratio further increasing to 0.85, signaling a strengthened ability to meet short-term obligations using the company's liquid assets. Overall, the trend in the quick ratio reflects both challenges and improvements in Southwest Gas Holdings Inc's liquidity management over the years.
Peer comparison
Dec 31, 2024