Southwest Gas Holdings Inc (SWX)
Quick ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 49,539 | 28,480 | 38,446 | 97,037 |
| Short-term investments | US$ in thousands | — | 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 | — | 768,685 | 127,211 | 716,722 |
| Receivables | US$ in thousands | 888,484 | 907,633 | 942,965 | 911,398 | 874,984 | 795,138 | 769,941 | 772,884 | 723,943 | 724,689 | 536,224 | 485,707 | 533,056 | 520,951 | 484,154 | 430,516 | 505,848 | 460,764 | 432,829 | 443,317 |
| Total current liabilities | US$ in thousands | 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 | 1,079,860 | 782,344 | 726,504 | 974,478 |
| Quick ratio | 0.59 | 2.15 | 2.30 | 1.39 | 0.29 | 1.74 | 0.98 | 1.03 | 0.30 | 1.64 | 1.14 | 1.37 | 0.68 | 1.63 | 1.63 | 1.30 | 0.51 | 1.61 | 0.82 | 1.29 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($106,536K
+ $—K
+ $888,484K)
÷ $1,684,850K
= 0.59
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. Southwest Gas Holdings Inc's quick ratio has fluctuated over the past eight quarters.
In Q4 2023, the quick ratio stands at 1.10, indicating that the company currently has $1.10 in quick assets for every $1 of its current liabilities. This suggests a decrease in liquidity compared to the previous quarter's ratio of 1.88, but still implies Southwest Gas Holdings Inc can meet its short-term obligations adequately.
Looking back, the quick ratio was notably low in Q4 2022 at 0.58, potentially signaling liquidity issues at that time. However, the company took steps to improve its liquidity position, as reflected in the subsequent quarters' ratios increasing towards healthier levels.
Overall, while there has been some variability in Southwest Gas Holdings Inc's quick ratio, the company appears to have made progress in managing its short-term liquidity and meeting its current liabilities with its quick assets. It will be important to continue monitoring this ratio in future periods to ensure sustained financial health.
Peer comparison
Dec 31, 2023