Marriot Vacations Worldwide (VAC)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 197,000 | 248,000 | 524,000 | 342,000 | 524,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,301,000 | 1,292,000 | 1,320,000 | 1,264,000 | 862,000 |
| Cash ratio | 0.15 | 0.19 | 0.40 | 0.27 | 0.61 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($197,000K
+ $—K)
÷ $1,301,000K
= 0.15
The cash ratio of Marriott Vacations Worldwide has exhibited fluctuations over the past five years. The ratio declined from 0.61 on December 31, 2020, to 0.27 on December 31, 2021, indicating a decrease in the company's ability to cover its current liabilities solely with cash and cash equivalents.
However, on December 31, 2022, the cash ratio improved to 0.40, suggesting a better liquidity position. This improvement was followed by a decline to 0.19 on December 31, 2023, indicating potential liquidity challenges or increased reliance on other current assets to meet short-term obligations.
On December 31, 2024, the cash ratio further decreased to 0.15, signaling a continued decrease in the company's ability to cover its current liabilities with cash alone. Overall, the varying trend in the cash ratio highlights fluctuations in Marriott Vacations Worldwide's liquidity position over the analyzed period.