Visteon Corp (VC)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	623,000	515,000	520,000	452,000	496,000
Short-term investments	US$ in thousands	—	—	—	—	60,000
Total current liabilities	US$ in thousands	916,000	931,000	1,035,000	852,000	824,000
Cash ratio		0.68	0.55	0.50	0.53	0.67

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($623,000K + $—K) ÷ $916,000K
= 0.68

The cash ratio of Visteon Corp has experienced fluctuations over the past five years, with values ranging from 0.50 to 0.68. The ratio indicates the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio implies a stronger liquidity position, as more cash is available to meet immediate financial obligations.

In 2020, Visteon Corp had a cash ratio of 0.67, demonstrating a relatively healthy liquidity position. However, there was a decline in the cash ratio to 0.53 in 2021, indicating a decrease in the company's ability to cover short-term liabilities with cash on hand.

Subsequently, the cash ratio further decreased to 0.50 in 2022, signaling a potential liquidity challenge for the company. However, there was a slight improvement in 2023, with the cash ratio increasing to 0.55, suggesting a better ability to meet short-term obligations with available cash.

Finally, in 2024, Visteon Corp's cash ratio rebounded to 0.68, reaching a level higher than in 2020. This increase reflects a strengthened liquidity position, indicating the company's enhanced ability to cover short-term liabilities with cash reserves.

Overall, the trend in Visteon Corp's cash ratio highlights fluctuations in its liquidity position over the years, with potential implications for its short-term financial health and ability to meet immediate obligations.