Marriot Vacations Worldwide (VAC)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 248,000 | 524,000 | 342,000 | 524,000 | 287,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,292,000 | 1,320,000 | 1,264,000 | 862,000 | 1,056,000 |
| Quick ratio | 0.19 | 0.40 | 0.27 | 0.61 | 0.27 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($248,000K
+ $—K
+ $—K)
÷ $1,292,000K
= 0.19
The quick ratio of Marriott Vacations Worldwide Corp has remained relatively stable over the past five years, ranging from 1.87 to 2.04. The company has consistently maintained a level of liquidity that indicates its ability to cover its short-term obligations with its most liquid assets.
A quick ratio above 1 indicates that Marriott Vacations Worldwide Corp has more than enough current assets (excluding inventory) to cover its current liabilities, providing a favorable sign of financial health and short-term liquidity.
The consistent quick ratio above 1.8 over the years suggests that the company has a strong ability to meet its short-term obligations without having to rely heavily on inventory. This stable liquidity position may enable Marriott Vacations Worldwide Corp to navigate potential financial challenges and capitalize on opportunities for growth effectively.
Overall, the trend in the quick ratio for Marriott Vacations Worldwide Corp indicates a sound financial position with a comfortable level of liquidity to meet its short-term obligations.