The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Southwest Gas Holdings's quick ratio for the quarter that ended in Dec. 2023 was 1.12.
Southwest Gas Holdings has a quick ratio of 1.12. It generally indicates good short-term financial strength.
The historical rank and industry rank for Southwest Gas Holdings's Quick Ratio or its related term are showing as below:
SWX'
s Quick Ratio Range Over the Past 10 Years
Min: 0.52 Med: 0.93 Max: 1.29
Current: 1.12
During the past 13 years, Southwest Gas Holdings's highest Quick Ratio was 1.29. The lowest was 0.52. And the median was 0.93.
SWX's Quick Ratio is ranked better than 60.08% of 516
companies
in the Utilities - Regulated industry
Industry Median: 0.97
vs SWX: 1.12
Southwest Gas Holdings Quick Ratio Historical Data
The historical data trend for Southwest Gas Holdings's Quick 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.
For the Utilities - Regulated Gas subindustry, Southwest Gas Holdings's Quick Ratio, along with its competitors' market caps and Quick 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.
Southwest Gas Holdings Quick Ratio Distribution
For the Utilities - Regulated industry and Utilities sector, Southwest Gas Holdings's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Southwest Gas Holdings's Quick Ratio falls into.
Southwest Gas Holdings Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Southwest Gas Holdings's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as
* 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.
Southwest Gas Holdings (NYSE:SWX) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Southwest Gas Holdings Quick Ratio Related Terms
Thank you for viewing the detailed overview of Southwest Gas Holdings's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Southwest Gas Holdings (Southwest Gas Holdings) Business Description
Southwest Gas Holdings Inc is a utility company primarily engaged in the purchasing, distributing, and transporting of natural gas in the American Southwest. The company segments its activities into natural gas operations and Utility Infrastructure Services units. The first of these encompasses the company's core natural gas business as one of the largest distributors in the states of Arizona and Nevada. The natural gas operations division is responsible for roughly half of Southwest Gas' total revenue through the sale of natural gas to mainly residential and small commercial customers. The Utility Infrastructure Services segment generates the other half of the company's total revenue from the underground piping contractor services that its subsidiary, Centuri Construction Group, provides.
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