Visteon Corp (VC)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 623,000 | 515,000 | 520,000 | 452,000 | 496,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 60,000 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 916,000 | 931,000 | 1,035,000 | 852,000 | 824,000 |
| Quick ratio | 0.68 | 0.55 | 0.50 | 0.53 | 0.67 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($623,000K
+ $—K
+ $—K)
÷ $916,000K
= 0.68
The quick ratio of Visteon Corp has exhibited some fluctuations over the years, standing at 0.67 as of December 31, 2020, decreasing to 0.53 by December 31, 2021, and further declining to 0.50 as of December 31, 2022. However, there was a slight improvement to 0.55 by December 31, 2023, and a subsequent increase to 0.68 by December 31, 2024.
The trend in the quick ratio suggests that Visteon Corp may have faced some liquidity challenges in the earlier years, as the ratio was below 1, indicating a potential difficulty in meeting short-term obligations with its most liquid assets. The subsequent improvement in the ratio in the later years is a positive sign, indicating a better ability to cover short-term liabilities with its quick assets.
It is essential for Visteon Corp to continue monitoring and managing its liquidity position to ensure it maintains a healthy quick ratio, as this ratio is a key indicator of the company's short-term liquidity and ability to withstand financial challenges.
Peer comparison
Dec 31, 2024