Liquidity ratios measure the company ability to meet its short-term obligations.
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- Income Statement
- Statement of Comprehensive Income
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Selected Financial Data since 2005
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
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Liquidity Ratios (Summary)
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
The analysis of the liquidity ratios over the reported quarters reveals several notable trends and changes. The current ratio generally fluctuates within a range, initially declining from 0.95 in the first quarter of 2017 to a low point around 0.67 by the first quarter of 2019. It then shows a recovery and some volatility, peaking at 1.29 in the third quarter of 2020 before decreasing again toward 0.96 by the first quarter of 2022. This pattern indicates that the company's ability to cover current liabilities with current assets has experienced periods of both tightening and improvement, with the highest liquidity observed during 2020.
The quick ratio trend closely mirrors that of the current ratio but consistently remains lower, as expected due to the exclusion of inventories. It decreases from 0.8 early in 2017 to around 0.51 by the first quarter of 2019, suggesting a weakening in immediate liquidity during this time. An improvement is evident starting mid-2019, reaching a peak of 1.12 in the third quarter of 2020, implying a relative strengthening of liquid assets excluding inventories. However, by the first quarter of 2022, the quick ratio declines again to 0.84, indicating some reduction in the most liquid assets relative to current liabilities.
The cash ratio exhibits more pronounced fluctuations and generally lower values compared to both the current and quick ratios, reflecting a more conservative measure of liquidity focused solely on cash and cash equivalents. It starts at 0.39 in early 2017, drops to a near low of 0.11 in mid-2019, indicating a period of limited cash reserves, but then shows a significant increase, peaking at 0.68 in the third quarter of 2020. This surge corresponds with the general liquidity improvements seen in other ratios during 2020. The cash ratio subsequently declines to 0.5 by early 2022, maintaining a moderate cash position relative to current liabilities but below levels seen in the peak period.
Overall, liquidity ratios indicate a period of constrained short-term financial flexibility between 2017 and 2019, followed by a marked improvement during 2020, particularly in cash and near-cash assets. Post-2020, there is a general moderation and slight decline in liquidity measures, though they remain above the lower levels seen earlier. The fluctuations suggest active management of working capital and cash reserves in response to operational or market conditions over the years analyzed.
- Current Ratio
- Moved from slightly below 1.0 to a lower point near 0.67 in 2019, then improved to above 1.2 in 2020 before declining slightly again, indicating variable but overall moderate short-term liquidity.
- Quick Ratio
- Showed similar trends but consistently below the current ratio, with a low around 0.51 and a peak above 1.1 in 2020, reflecting changes in liquid assets excluding inventories.
- Cash Ratio
- Demonstrated the most volatility, falling to a low of 0.11 and rising to nearly 0.7, indicating fluctuating levels of cash reserves relative to immediate liabilities and a stronger cash position during 2020.
Current Ratio
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
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Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||||||
Liquidity Ratio | ||||||||||||||||||||||||||||
Current ratio1 | ||||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||||
Current Ratio, Competitors2 | ||||||||||||||||||||||||||||
FedEx Corp. | ||||||||||||||||||||||||||||
Uber Technologies Inc. | ||||||||||||||||||||||||||||
Union Pacific Corp. | ||||||||||||||||||||||||||||
United Airlines Holdings Inc. | ||||||||||||||||||||||||||||
United Parcel Service Inc. |
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q1 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- Current assets exhibit notable fluctuations over the analyzed quarters. Beginning at 2,327 million USD in March 2017, the values generally range between approximately 1,900 and 2,500 million USD through 2018 and 2019, with occasional declines such as in June 2018. There is a visible upward movement starting from mid-2020, peaking at 3,012 million USD in June 2021 before retracting slightly towards the end of the dataset, finishing at 3,015 million USD in March 2022. This upward trend from 2020 onward suggests increased liquidity or asset accumulation.
- Current Liabilities
- Current liabilities show variability without a clear long-term directional trend upwards or downwards. The figures oscillate generally between 2,300 and 2,900 million USD across the quarters, starting at 2,443 million USD in March 2017, with peaks around 2,885 million USD in March 2019 and 3,147 million USD at the end of the period in March 2022. There is a period of decline in liabilities during mid-2020, with values decreasing to approximately 1,935 million USD, suggesting a reduction in short-term obligations. However, liabilities rise again ending above previous levels.
- Current Ratio
- The current ratio indicates the company's short-term liquidity position relative to its current liabilities. Initially below the ideal benchmark of 1 in early 2017, the ratio remains under 1 through most of 2017, 2018, and 2019, reaching its lowest point at 0.67 in March 2019. This implies that current liabilities exceeded current assets during this period, potentially signaling liquidity constraints. From mid-2020, the ratio improves significantly, surpassing 1 in June 2020 and maintaining values above or near 1 until December 2021. This improvement corresponds with a rise in current assets and a reduction in liabilities during the same timeframe, reflecting a strengthened liquidity position. Nevertheless, in early 2022, the ratio declines again below 1, reaching 0.96 in March 2022, indicating a marginal weakening in liquidity relative to short-term liabilities.
- Overall Trends and Implications
- Overall, the company experienced fluctuating liquidity conditions over the period analyzed. Early years were characterized by current ratios below 1, indicating tight liquidity and liabilities exceeding assets. The period from mid-2020 to late 2021 shows a marked improvement in liquidity, driven primarily by an increase in current assets and a temporary reduction in current liabilities. The subsequent decline in the current ratio by March 2022 suggests a potential reemergence of liquidity pressures. The observed patterns highlight the importance of monitoring short-term assets and liabilities closely to maintain healthy liquidity levels. The significant asset accumulation in 2021 could be the result of strategic decisions affecting working capital, while the fluctuating liabilities point to varying obligations or debt management strategies over the quarters.
Quick Ratio
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
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Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||||
Accounts receivable, net | ||||||||||||||||||||||||||||
Total quick assets | ||||||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||||||
Liquidity Ratio | ||||||||||||||||||||||||||||
Quick ratio1 | ||||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||||
Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||
FedEx Corp. | ||||||||||||||||||||||||||||
Uber Technologies Inc. | ||||||||||||||||||||||||||||
Union Pacific Corp. | ||||||||||||||||||||||||||||
United Airlines Holdings Inc. | ||||||||||||||||||||||||||||
United Parcel Service Inc. |
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q1 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals the following trends and patterns over the observed periods:
- Total Quick Assets
- Total quick assets have shown considerable fluctuations across the quarters. Initially, values ranged approximately between 1,500 and 2,000 million US dollars. There were noticeable peaks around mid-2020 and early 2021, with figures exceeding 2,200 million US dollars, indicating occasional improvement in liquid asset levels. However, some periods, particularly in 2018 and late 2021, recorded lower quick assets, dropping below 1,400 million US dollars, signaling intermittent reductions in highly liquid resources.
- Current Liabilities
- Current liabilities have generally remained elevated throughout the timeframe, mostly ranging between 2,200 and 3,100 million US dollars. An upward trajectory is observed in certain quarters, particularly towards the end of 2021 and early 2022, where liabilities reached the peak of approximately 3,147 million US dollars. The earlier periods displayed moderately stable liabilities between 2,300 and 2,600 million US dollars, illustrating consistent obligations due in the short term.
- Quick Ratio
- The quick ratio presents a trend indicative of variability in liquidity relative to current liabilities. Early figures ranged from approximately 0.65 to 0.86, reflecting constraints in immediate asset coverage against liabilities. A decline is noticeable in 2018 and 2019, with ratios falling as low as 0.51, pointing to increasingly tight liquidity positions. A significant improvement occurred during mid to late 2020, where the ratio improved above 1.0, peaking at 1.12, suggesting temporary strengthening of the company's ability to meet short-term debts with the most liquid assets. Subsequently, the ratio declined but remained near or slightly below 1.0 in 2021 before dropping again towards early 2022, indicating fluctuating but generally cautious liquidity management over the period.
Cash Ratio
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
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Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||||
Total cash assets | ||||||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||||||
Liquidity Ratio | ||||||||||||||||||||||||||||
Cash ratio1 | ||||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||||
Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||
FedEx Corp. | ||||||||||||||||||||||||||||
Uber Technologies Inc. | ||||||||||||||||||||||||||||
Union Pacific Corp. | ||||||||||||||||||||||||||||
United Airlines Holdings Inc. | ||||||||||||||||||||||||||||
United Parcel Service Inc. |
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q1 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total cash assets
- Total cash assets exhibited significant fluctuations over the reported periods. From March 2017 to December 2017, the amounts decreased from 955 million USD to 690 million USD. The first quarter of 2018 showed an increase to 1072 million USD, followed by a decrease later in the year, reaching a low of 358 million USD in December 2018. In 2019, cash assets fluctuated moderately between 274 million USD and 580 million USD. The year 2020 witnessed a marked increase, peaking at 1359 million USD in the second quarter before declining to 998 million USD by year-end. In 2021, cash assets generally trended upwards, reaching the highest value of 1670 million USD in the first quarter of 2022, though the third quarter of 2021 indicated a notable dip to 839 million USD.
- Current liabilities
- Current liabilities showed a generally increasing trend over the period. Starting at 2443 million USD in the first quarter of 2017, liabilities fluctuated but maintained an upward trajectory, reaching 2591 million USD by the end of 2017. The following years saw periodic ups and downs, with the lowest value observed at 1935 million USD in the second quarter of 2020, likely reflecting a reduction in short-term obligations during that period. Subsequently, liabilities rose, culminating in the highest figure of 3147 million USD in the first quarter of 2022. This overall increase suggests growing short-term financial obligations over the years, despite intermittent reductions.
- Cash ratio
- The cash ratio, reflecting liquidity by comparing cash assets to current liabilities, presented considerable variability without a consistent trend. Early in the timeframe, the ratio hovered between 0.27 and 0.39, indicating moderate liquidity. It peaked at 0.45 in the first quarter of 2018 but dropped sharply to 0.14 by the end of 2018, corresponding with reduced cash assets and rising liabilities. The lowest point in the mid-2019 period was 0.11, reflecting weakened immediate liquidity. However, there was a significant recovery in 2020, with the ratio reaching 0.68 in the third quarter, the highest level recorded, signifying strengthened liquidity during this period. Subsequent quarters showed a decline, with values stabilizing around the 0.5 to 0.6 range, except for a drop to 0.33 in the fourth quarter of 2021. Overall, liquidity experienced pronounced swings, with periods of risk mitigation followed by phases of relative liquidity tightening.