Vail Resorts Inc (MTN)
Liquidity ratios
| Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.82 | 1.18 | 0.96 | 0.83 | 1.07 | 1.50 | 1.37 | 1.21 | 1.61 | 2.22 | 1.53 | 1.40 | 1.78 | 2.35 | 1.60 | 0.89 | 1.10 | 1.35 | 0.45 | 0.44 |
| Quick ratio | 0.63 | 1.01 | 0.78 | 0.61 | 0.83 | 1.26 | 1.13 | 0.97 | 1.34 | 2.01 | 1.36 | 1.24 | 1.72 | 2.30 | 1.54 | 0.81 | 0.82 | 1.05 | 0.25 | 0.23 |
| Cash ratio | 0.29 | 0.68 | 0.67 | 0.53 | 0.50 | 0.91 | 1.01 | 0.88 | 1.00 | 1.69 | 1.22 | 1.16 | 1.37 | 2.01 | 1.42 | 0.59 | 0.65 | 0.87 | 0.14 | 0.14 |
The liquidity ratios of Vail Resorts Inc have shown significant fluctuations over the past few quarters. The current ratio, which measures the company's ability to pay its short-term obligations with its current assets, has decreased from a high of 2.35 in April 2021 to a low of 0.82 in July 2024. This downward trend indicates a potential strain on Vail Resorts' short-term liquidity position.
Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also experienced a decline over the periods, dropping from 2.30 in April 2021 to 0.63 in July 2024. This suggests that Vail Resorts may have difficulty meeting its immediate financial obligations with its most liquid assets.
The cash ratio, which focuses solely on the company's cash and cash equivalents to cover its current liabilities, has shown a similar downward trajectory, falling from 2.01 in April 2021 to 0.29 in July 2024. This indicates a decrease in Vail Resorts' ability to rely on cash reserves to meet its short-term obligations.
Overall, the decreasing trend in liquidity ratios for Vail Resorts Inc highlights potential concerns regarding the company's ability to manage its short-term financial obligations effectively. It may be advisable for the company to closely monitor its liquidity position and take appropriate measures to strengthen its financial flexibility.
Additional liquidity measure
| Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 28.41 | 47.13 | 21.27 | 10.02 | 34.00 | 34.74 | -32.31 | -4.59 | 15.20 | 27.89 | -6.01 | 7.30 | 47.77 | 52.11 | 27.51 | 66.67 | 59.45 | 50.78 | 3.70 | -0.19 |
The cash conversion cycle for Vail Resorts Inc has shown some variability over the past few periods. In the most recent period ending July 31, 2024, the company's cash conversion cycle was 28.41 days, indicating that it takes approximately 28 days for the company to convert its investments in inventory back into cash.
Looking back at the previous periods, the cash conversion cycle has fluctuated significantly. The longest cash conversion cycle was observed in October 2020 at 66.67 days, suggesting a longer period required to convert inventory into sales and then into cash. Conversely, the company experienced negative cash conversion cycles in several periods, particularly in January 2023 and April 2022, indicating efficient management in converting investments into cash quickly.
Overall, the trend in Vail Resorts Inc's cash conversion cycle appears to be somewhat volatile, with periods of both efficiency and inefficiency in managing its working capital and converting assets into cash. Evaluating the reasons behind these fluctuations would be essential to optimizing the company's cash flow management and operational efficiency.