Visteon Corp (VC)

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 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 1.69 1.69 1.68 1.74
Quick ratio 1.62 1.44 1.42 1.32 1.31 1.22 1.23 1.16 1.35 1.38 1.37 1.37 1.48 1.36 1.94 1.74 1.43 1.29 1.19 1.29
Cash ratio 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 0.58 0.58 0.57 0.58

The liquidity ratios of Visteon Corp. indicate the company's ability to meet its short-term obligations and financial flexibility.

The current ratio, which measures the company's ability to pay off its current liabilities with its current assets, has been relatively stable and consistently above 1 over the past eight quarters, ranging from 1.63 to 1.75. This suggests that Visteon Corp. has a strong ability to cover its short-term obligations.

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 shown consistency and improvement over time, with values ranging from 1.28 to 1.41. This indicates that the company has an adequate level of highly liquid assets to cover its immediate liabilities.

The cash ratio, which is the most conservative liquidity ratio, focuses solely on the company's ability to cover its current liabilities with cash and cash equivalents. Visteon Corp.'s cash ratio has improved significantly from 0.43 in Q3 2022 to 0.62 in Q4 2023, indicating a stronger ability to meet short-term obligations with cash on hand.

Overall, the liquidity ratios of Visteon Corp. demonstrate a healthy liquidity position and suggest that the company is well-positioned to meet its short-term financial commitments. However, it is important for the company to maintain a sufficient level of liquidity to navigate any unforeseen financial challenges that may arise.

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 66.20 53.69 53.14 49.46 49.99 54.24 56.03 47.96 57.32 48.47 34.75 27.04 43.64 32.46 33.33 19.58 35.66 29.15 22.32 30.22

The cash conversion cycle of Visteon Corp. has shown fluctuating trends over the past eight quarters. The cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales.

In Q4 2023, the cash conversion cycle was 41.31 days, showing a slight improvement compared to the previous quarter's 40.35 days. This indicates that Visteon was able to efficiently manage its inventory, payables, and receivables during this period.

Looking back further, the cycle was relatively stable in Q4 2022 at 42.12 days, but it increased significantly in Q3 2022 to 51.81 days, only to decrease in Q2 2022 to 57.95 days before improving again in Q1 2022 to 52.26 days.

Overall, Visteon Corp.'s cash conversion cycle has displayed some volatility, with periods of both efficiency and inefficiency in managing its working capital. The company should continue to monitor and optimize its inventory, accounts receivable, and accounts payable processes to maintain a healthy cash conversion cycle in the future.