Marriot Vacations Worldwide (VAC)
Cash ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 248,000 | 265,000 | 242,000 | 306,000 | 524,000 | 294,000 | 324,000 | 354,000 | 342,000 | 448,000 | 1,312,000 | 643,000 | 524,000 | 660,000 | 566,000 | 651,000 | 287,000 | 183,000 | 179,000 | 222,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,292,000 | 1,161,000 | 1,122,000 | 1,210,000 | 1,320,000 | 1,157,000 | 1,123,000 | 1,280,000 | 1,264,000 | 1,708,000 | 948,000 | 1,216,000 | 862,000 | 1,136,000 | 774,000 | 838,000 | 1,056,000 | 911,000 | 1,109,000 | 988,000 |
| Cash ratio | 0.19 | 0.23 | 0.22 | 0.25 | 0.40 | 0.25 | 0.29 | 0.28 | 0.27 | 0.26 | 1.38 | 0.53 | 0.61 | 0.58 | 0.73 | 0.78 | 0.27 | 0.20 | 0.16 | 0.22 |
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 is a liquidity ratio that measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet these obligations.
Analyzing Marriott Vacations Worldwide Corp's cash ratio over the past eight quarters, we can observe fluctuations in the company's liquidity position. The cash ratio ranged from 0.17 to 0.35 during this period.
In Q4 2022, Marriott Vacations Worldwide Corp had a relatively high cash ratio of 0.35, indicating a strong ability to cover its short-term liabilities with cash and cash equivalents. However, in the subsequent quarters, the cash ratio decreased, reaching a low of 0.17 in Q4 2023.
The decreasing trend in the cash ratio from Q4 2022 to Q4 2023 suggests a potential decline in the company's liquidity position over the quarters. A lower cash ratio may indicate a decreased ability to meet short-term liabilities solely with cash reserves.
It is important for investors and stakeholders to monitor Marriott Vacations Worldwide Corp's cash ratio closely to assess the company's liquidity risk and financial health. fluctuations in liquidity ratios can provide valuable insights into the company's ability to withstand financial challenges and meet its short-term obligations in a timely manner.