GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » South Bow Corp (NYSE:SOBO) » Definitions » Cash Ratio

SOBO (South Bow) Cash Ratio : 0.23 (As of Dec. 2024)


View and export this data going back to 2024. Start your Free Trial

What is South Bow Cash Ratio?

The Cash Ratio measures a company’s ability to meet its short-term obligations with cash and near-cash resources. It is calculated as a company's Cash, Cash Equivalents, Marketable Securities divides by its Total Current Liabilities. South Bow's Cash Ratio for the quarter that ended in Dec. 2024 was 0.23.

South Bow has a Cash Ratio of 0.23. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.

The historical rank and industry rank for South Bow's Cash Ratio or its related term are showing as below:

SOBO' s Cash Ratio Range Over the Past 10 Years
Min: 0.13   Med: 0.18   Max: 0.23
Current: 0.23

During the past 2 years, South Bow's highest Cash Ratio was 0.23. The lowest was 0.13. And the median was 0.18.

SOBO's Cash Ratio is ranked worse than
65.68% of 979 companies
in the Oil & Gas industry
Industry Median: 0.43 vs SOBO: 0.23

South Bow Cash Ratio Historical Data

The historical data trend for South Bow's Cash Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

South Bow Cash Ratio Chart

South Bow Annual Data
Trend Dec23 Dec24
Cash Ratio
0.13 0.23

South Bow Quarterly Data
Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Cash Ratio Get a 7-Day Free Trial 0.13 - - 0.09 0.23

Competitive Comparison of South Bow's Cash Ratio

For the Oil & Gas Midstream subindustry, South Bow's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

South Bow's Cash Ratio Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, South Bow's Cash Ratio distribution charts can be found below:

* The bar in red indicates where South Bow's Cash Ratio falls into.


;
;

South Bow Cash Ratio Calculation

The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.

South Bow's Cash Ratio for the fiscal year that ended in Dec. 2024 is calculated as:

Cash Ratio (A: Dec. 2024 )=Cash, Cash Equivalents, Marketable Securities/Total Current Liabilities
=397/1761
=0.23

South Bow's Cash Ratio for the quarter that ended in Dec. 2024 is calculated as:

Cash Ratio (Q: Dec. 2024 )=Cash, Cash Equivalents, Marketable Securities/Total Current Liabilities
=397/1761
=0.23

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

South Bow  (NYSE:SOBO) Cash Ratio Explanation

The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.

The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.

In general, the higher the cash ratio, the better the company's liquidity position.

South Bow Cash Ratio Related Terms

Thank you for viewing the detailed overview of South Bow's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.

South Bow Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » South Bow Corp (NYSE:SOBO) » Definitions » Cash Ratio
Comparable Companies
TSX:KEY TSX:ALA TSX:GEI TSX:TPZ TSX:TWM TSXV:SRR TSX:PPL TSX:ENB EPD WMB ET KMI OKE MPLX LNG TSX:TRP TRGP CQP VG WES
Traded in Other Exchanges
SOBO:Canada
Address
707, 5 Street SW, Suite 900, Calgary, AB, CAN, T2P 1V8
Website
https://www.southbow.com
South Bow Corp is a energy infrastructure company. The company is engaged in constructing pipelines system safely transports liquids like crude oil, across Canadian provinces, U.S. states, and Gulf coasts. It has three reportable segments: Keystone Pipeline System, Marketing, and Intra-Alberta & Other. It derives maximum revenue from Keystone Pipeline System segment.