Marriot Vacations Worldwide (VAC)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 197,000 | 197,000 | 206,000 | 237,000 | 574,000 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,301,000 | 1,180,000 | 1,150,000 | 1,296,000 | 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 |
| Cash ratio | 0.15 | 0.17 | 0.18 | 0.18 | 0.44 | 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 |
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 Marriot Vacations Worldwide has exhibited fluctuations over the past few years. The ratio was relatively stable in the range of 0.50 to 0.80 from March 2020 to June 2021. However, there was a significant increase in the cash ratio to 1.38 by the end of June 2021, indicating a higher level of cash and cash equivalents compared to current liabilities.
Subsequently, there was a sharp decrease in the cash ratio to 0.26 by September 2021, which could suggest a decrease in liquidity or an increase in current liabilities. The ratio continued to fluctuate between 0.25 to 0.44 from September 2021 to December 2024, with no clear trend in liquidity.
Overall, a cash ratio above 1 indicates that the company has more cash on hand than current liabilities, which can be a positive sign of financial health and liquidity. On the other hand, a cash ratio below 1 may suggest potential liquidity issues or a need to manage current liabilities more effectively.