Vicor Corporation (VICR)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 420,366 | 362,604 | 356,760 | 316,932 | 179,066 |
| Total current liabilities | US$ in thousands | 44,169 | 64,549 | 49,093 | 40,513 | 29,930 |
| Current ratio | 9.52 | 5.62 | 7.27 | 7.82 | 5.98 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $420,366K ÷ $44,169K
= 9.52
The current ratio measures a company's ability to cover its short-term liabilities with its short-term assets. A higher current ratio indicates better liquidity and financial health as it suggests that the company has more current assets to meet its short-term obligations.
Based on the data provided, Vicor Corp.'s current ratio has shown variability over the past five years. The current ratio has significantly improved from 5.98 in 2019 to 9.52 in 2023, reflecting a strengthening liquidity position. This upward trend indicates that Vicor Corp. has been able to increase its current assets relative to its current liabilities, which may imply better management of working capital.
In 2022, there was a slight decrease in the current ratio to 5.62, which may have raised concerns about the company's ability to meet its short-term obligations. However, this ratio improved in 2023, indicating a recovery in liquidity.
Overall, Vicor Corp.'s current ratio has generally been above 1 over the past five years, indicating that the company has had sufficient current assets to cover its current liabilities. The recent significant increase in the current ratio suggests that Vicor Corp. is in a strong position to meet its short-term financial obligations.
It is important for investors and creditors to monitor changes in the current ratio over time to assess Vicor Corp.'s liquidity position and financial stability.
Peer comparison
Dec 31, 2023