Vicor Corporation (VICR)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 277,273 | 242,219 | 190,611 | 182,418 | 161,742 |
| Short-term investments | US$ in thousands | — | — | 0 | 45,215 | 50,166 |
| Total current liabilities | US$ in thousands | 61,820 | 44,169 | 64,549 | 49,093 | 40,513 |
| Cash ratio | 4.49 | 5.48 | 2.95 | 4.64 | 5.23 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($277,273K
+ $—K)
÷ $61,820K
= 4.49
The cash ratio of Vicor Corporation has exhibited some fluctuations over the past five years. Starting at 5.23 in December 2020, the ratio decreased to 4.64 by December 2021, indicating a lower level of cash compared to current liabilities. However, in December 2022, the cash ratio dropped significantly to 2.95, suggesting potential liquidity challenges.
The ratio then rebounded in December 2023 to 5.48, surpassing the initial level in 2020, signaling improved liquidity and a stronger ability to cover short-term obligations with cash on hand. In December 2024, the cash ratio slightly decreased to 4.49 but remained at a reasonable level, indicating the company's continued ability to meet its current liabilities with its cash reserves.
Overall, while there have been fluctuations in Vicor Corporation's cash ratio over the years, the company has generally maintained a healthy level of cash compared to its short-term obligations, demonstrating sufficient liquidity to cover immediate financial needs.
Peer comparison
Dec 31, 2024