Southwest Gas Holdings Inc (SWX)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 106,536 | 123,078 | 222,697 | 83,352 | 49,539 |
| Short-term investments | US$ in thousands | 1,266,340 | — | — | 152,748 | 3 |
| Receivables | US$ in thousands | 888,484 | 874,984 | 723,943 | 533,056 | 505,848 |
| Total current liabilities | US$ in thousands | 1,684,850 | 3,422,960 | 3,112,050 | 911,967 | 1,079,860 |
| Quick ratio | 1.34 | 0.29 | 0.30 | 0.84 | 0.51 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($106,536K
+ $1,266,340K
+ $888,484K)
÷ $1,684,850K
= 1.34
The quick ratio of Southwest Gas Holdings Inc has shown fluctuations over the past five years. The quick ratio indicates the company's ability to cover its current liabilities with its most liquid assets. In 2023, the quick ratio improved to 1.10 from 0.58 in 2022, indicating an enhanced ability to meet short-term obligations using liquid assets. The ratio remained relatively low in 2021 at 0.52, which may have raised concerns about liquidity. However, the ratio rebounded in 2020 to 0.96 and increased further in 2019 to 0.80. Overall, the trend suggests that Southwest Gas Holdings Inc has managed to strengthen its short-term liquidity position in 2023 compared to previous years.
Peer comparison
Dec 31, 2023