Marriot Vacations Worldwide (VAC)

Liquidity ratios

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
Current 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 0.74 0.80 0.35 0.27 0.20 0.26
Quick 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
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

Marriott Vacations Worldwide Corp's liquidity ratios show a healthy trend over the past 8 quarters. The current ratio, which measures the company's ability to pay short-term obligations with its current assets, has remained consistently above 2, indicating that Marriott Vacations Worldwide Corp has more than enough current assets to cover its current liabilities.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. This ratio has also been consistently above 2, suggesting that the company has a strong ability to meet its short-term obligations without relying on inventory.

The cash ratio, which is the most conservative measure of liquidity, has shown some variability but generally indicates that Marriott Vacations Worldwide Corp holds an adequate amount of cash to cover its immediate liabilities. The decreasing trend in the cash ratio in recent quarters may warrant further investigation into the company's cash management practices.

Overall, based on the liquidity ratios analyzed, Marriott Vacations Worldwide Corp appears to have a strong liquidity position, with ample short-term assets to meet its short-term liabilities. Investors and stakeholders can view the company's liquidity position positively based on these ratios.

Additional liquidity measure

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 conversion cycle days 153.35 181.51 181.26 180.09 181.40 166.66 180.42 186.40 209.78 281.15 355.61 427.01 301.45 225.64 2.52 4.57 18.98 18.99 16.75 16.18

The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and accounts receivable into cash flows from sales. For Marriott Vacations Worldwide Corp, the cash conversion cycle has fluctuated over the past eight quarters.

In the most recent quarter, Q4 2023, the cash conversion cycle stood at 299.45 days, indicating an improvement compared to the previous quarter. However, when compared to the same quarter in the previous year, the cash conversion cycle has increased.

Overall, Marriott Vacations Worldwide Corp has experienced fluctuations in its cash conversion cycle over the past two years. The company should continue to monitor and manage its inventory and accounts receivable effectively to optimize its cash conversion cycle and improve its overall liquidity position.