Visteon Corp (VC)

The liquidity ratios of Visteon Corp. have shown some fluctuations over the past five years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has ranged from 1.63 to 1.74 during this period. This indicates that Visteon has generally been able to meet its short-term obligations comfortably.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity as it excludes inventory from current assets. Visteon's quick ratio has varied between 1.31 and 1.47 over the past five years, reflecting a slightly tighter liquidity position compared to the current ratio. However, the values have generally remained above 1, suggesting that the company has been able to cover its short-term liabilities without relying heavily on inventory.

The cash ratio, which is the most conservative liquidity ratio, measures the proportion of a company's current liabilities that can be covered by cash and cash equivalents alone. Visteon's cash ratio has ranged from 0.56 to 0.70 during the period under consideration. While the cash ratio has been relatively lower compared to the current and quick ratios, the values have remained above 0.5, indicating that Visteon has maintained a sufficient level of cash reserves to meet its short-term obligations.

Overall, Visteon Corp. has demonstrated reasonable liquidity levels over the past five years, with the current, quick, and cash ratios generally staying within acceptable ranges. However, the company should continue to monitor its liquidity position to ensure it remains well-equipped to meet its short-term financial commitments and navigate any potential economic challenges.

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Additional liquidity measure

The cash conversion cycle of Visteon Corp. has shown fluctuations over the past five years. In 2023, the company's cash conversion cycle was 41.31 days, which is a slight improvement from 2022 when it was 42.12 days. However, it is worth noting that the cycle was longer in 2023 compared to 2020 and 2019.

In 2021, Visteon Corp. had a longer cash conversion cycle of 46.17 days, indicating that the company took longer to convert its investments in inventory and receivables into cash during that year. The shortest cash conversion cycle in the past five years was seen in 2019, at 28.72 days, suggesting that the company was more efficient in managing its working capital during that period.

Overall, Visteon Corp.'s cash conversion cycle has shown variability over the years, with fluctuations in the efficiency of the company's working capital management. Further analysis would be needed to understand the factors driving these changes and to identify opportunities for improvement in the company's cash conversion cycle.