Marriot Vacations Worldwide (VAC)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 248,000 | 524,000 | 342,000 | 524,000 | 287,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,292,000 | 1,320,000 | 1,264,000 | 862,000 | 1,056,000 |
| Cash ratio | 0.19 | 0.40 | 0.27 | 0.61 | 0.27 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($248,000K
+ $—K)
÷ $1,292,000K
= 0.19
The cash ratio of Marriott Vacations Worldwide Corp has fluctuated over the past five years. The ratio peaked at 0.39 as of December 31, 2020, indicating the company had $0.39 of cash and cash equivalents for every $1 of current liabilities. This high ratio suggests a strong ability to cover short-term obligations with cash on hand.
However, the cash ratio showed a significant decrease to 0.17 as of December 31, 2023, reflecting a notable decline in the company's liquidity position compared to previous years. A lower cash ratio may indicate potential difficulties in meeting short-term obligations solely with available cash reserves.
It is important for investors and stakeholders to closely monitor Marriott Vacations Worldwide Corp's cash ratio to assess the company's liquidity position and ability to manage short-term financial obligations effectively. Additional analysis of the company's cash flow trends and overall financial health would provide further insights into its financial stability and sustainability.