Visteon Corp (VC)

Liquidity ratios

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
Current ratio 1.74 1.82 1.85 1.74 1.74 1.71 1.75 1.73 1.65 1.63 1.75 1.71 1.67 1.73 1.65 1.67 1.63 1.61 2.38 2.17
Quick ratio 0.68 0.59 0.57 0.54 0.55 0.51 0.50 0.50 0.50 0.37 0.40 0.47 0.53 0.63 0.70 0.70 0.67 0.61 1.26 1.13
Cash ratio 0.68 0.59 0.57 0.54 0.55 0.51 0.50 0.50 0.50 0.37 0.40 0.47 0.53 0.63 0.70 0.70 0.67 0.61 1.26 1.13

Visteon Corp's liquidity ratios indicate its ability to meet short-term obligations and manage cash efficiently over the years. The current ratio, which measures the company's ability to cover short-term liabilities with current assets, has shown fluctuations but generally remained above 1, reflecting a healthy liquidity position. However, there was a decline in the ratio from mid-2022 to mid-2023, indicating potential challenges in meeting short-term obligations during that period.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Visteon Corp's quick ratio has also fluctuated over the years but generally remained at acceptable levels, although it dipped below 1 at times, suggesting a reliance on inventory to meet short-term obligations during those periods.

The cash ratio, which measures the company's ability to cover current liabilities with cash and cash equivalents, has followed a similar trend to the quick ratio. Visteon Corp's cash ratio has generally been in line with the quick ratio, indicating that the company holds sufficient cash reserves to meet short-term obligations.

Overall, Visteon Corp's liquidity ratios demonstrate a reasonable ability to manage short-term cash requirements, although fluctuations in these ratios over time suggest the need for continuous monitoring to ensure a stable liquidity position.

Additional liquidity measure

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 conversion cycle days 30.97 34.56 33.27 36.46 31.37 32.63 33.28 37.30 37.49 39.83 40.08 46.68 37.96 36.50 29.55 28.76 28.05 26.66 27.65 25.87

The cash conversion cycle of Visteon Corp has fluctuated over the periods analyzed. It measures the average number of days it takes for the company to convert its investments in raw materials and other resources into cash flow from sales. A shorter cash conversion cycle indicates better liquidity and efficiency in managing working capital.

From March 31, 2020, to December 31, 2024, the company's cash conversion cycle ranged from a low of 25.87 days to a high of 46.68 days. Initially, the cycle remained relatively stable but started to increase significantly towards the end of the period. This increase suggests a potential slowdown in converting investments into cash.

Overall, Visteon Corp should closely monitor its cash conversion cycle to ensure efficient use of its working capital and timely conversion of resources into revenue. A consistent upward trend in the cycle may indicate inefficiencies in the company's working capital management, which could impact its financial performance and liquidity.