Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Norfolk Southern Corp., liquidity ratios
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Current ratio | 0.86 | 1.07 | 0.90 | 0.72 | 0.84 | |
| Quick ratio | 0.72 | 0.91 | 0.65 | 0.53 | 0.65 | |
| Cash ratio | 0.33 | 0.52 | 0.25 | 0.14 | 0.27 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Norfolk Southern Corp. current ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Norfolk Southern Corp. quick ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Norfolk Southern Corp. cash ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level. |
Current Ratio
Norfolk Southern Corp., current ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 2,167 | 2,318 | 2,081 | 1,862 | 2,149 | |
| Current liabilities | 2,521 | 2,160 | 2,300 | 2,591 | 2,545 | |
| Liquidity Ratio | ||||||
| Current ratio1 | 0.86 | 1.07 | 0.90 | 0.72 | 0.84 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| American Airlines Group Inc. | 0.91 | 0.67 | 0.45 | 0.48 | 0.61 | |
| CSX Corp. | 1.73 | 2.20 | 1.52 | 1.34 | 1.01 | |
| Delta Air Lines Inc. | 0.76 | 1.09 | 0.41 | 0.34 | 0.42 | |
| FedEx Corp. | 1.51 | 1.58 | 1.45 | 1.39 | 1.59 | |
| Union Pacific Corp. | 0.62 | 1.01 | 0.79 | 0.90 | 1.02 | |
| United Parcel Service Inc. | 1.42 | 1.19 | 1.11 | 1.15 | 1.22 | |
| Current Ratio, Sector | ||||||
| Transportation | 1.08 | 1.12 | 0.77 | 0.76 | 0.85 | |
| Current Ratio, Industry | ||||||
| Industrials | 1.27 | 1.37 | 1.08 | 1.07 | 1.17 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 2,167 ÷ 2,521 = 0.86
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Norfolk Southern Corp. current ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Quick Ratio
Norfolk Southern Corp., quick ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 839 | 1,115 | 580 | 358 | 690 | |
| Accounts receivable, net | 976 | 848 | 920 | 1,009 | 955 | |
| Total quick assets | 1,815 | 1,963 | 1,500 | 1,367 | 1,645 | |
| Current liabilities | 2,521 | 2,160 | 2,300 | 2,591 | 2,545 | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.72 | 0.91 | 0.65 | 0.53 | 0.65 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| American Airlines Group Inc. | 0.79 | 0.53 | 0.31 | 0.37 | 0.48 | |
| CSX Corp. | 1.55 | 2.00 | 1.37 | 1.11 | 0.73 | |
| Delta Air Lines Inc. | 0.65 | 0.97 | 0.28 | 0.22 | 0.27 | |
| FedEx Corp. | 1.40 | 1.45 | 1.27 | 1.22 | 1.46 | |
| Union Pacific Corp. | 0.47 | 0.79 | 0.56 | 0.65 | 0.70 | |
| United Parcel Service Inc. | 1.32 | 1.00 | 0.99 | 0.99 | 1.01 | |
| Quick Ratio, Sector | ||||||
| Transportation | 0.97 | 0.96 | 0.63 | 0.62 | 0.68 | |
| Quick Ratio, Industry | ||||||
| Industrials | 0.79 | 0.87 | 0.64 | 0.65 | 0.75 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 1,815 ÷ 2,521 = 0.72
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Norfolk Southern Corp. quick ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level. |
Cash Ratio
Norfolk Southern Corp., cash ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 839 | 1,115 | 580 | 358 | 690 | |
| Total cash assets | 839 | 1,115 | 580 | 358 | 690 | |
| Current liabilities | 2,521 | 2,160 | 2,300 | 2,591 | 2,545 | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.33 | 0.52 | 0.25 | 0.14 | 0.27 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| American Airlines Group Inc. | 0.71 | 0.45 | 0.22 | 0.27 | 0.36 | |
| CSX Corp. | 1.04 | 1.55 | 0.91 | 0.58 | 0.22 | |
| Delta Air Lines Inc. | 0.54 | 0.89 | 0.14 | 0.10 | 0.14 | |
| FedEx Corp. | 0.52 | 0.47 | 0.26 | 0.34 | 0.50 | |
| Union Pacific Corp. | 0.17 | 0.43 | 0.19 | 0.28 | 0.32 | |
| United Parcel Service Inc. | 0.60 | 0.37 | 0.37 | 0.36 | 0.32 | |
| Cash Ratio, Sector | ||||||
| Transportation | 0.57 | 0.57 | 0.25 | 0.25 | 0.29 | |
| Cash Ratio, Industry | ||||||
| Industrials | 0.40 | 0.48 | 0.30 | 0.28 | 0.37 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 839 ÷ 2,521 = 0.33
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Norfolk Southern Corp. cash ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level. |