Vicor Corporation (VICR)
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 | 7.49 | 6.41 | 6.42 | 6.68 | 9.52 | 8.57 | 7.58 | 6.83 | 5.62 | 5.56 | 5.93 | 6.95 | 7.27 | 8.21 | 7.01 | 7.74 | 7.82 | 8.15 | 7.36 | 5.26 |
| Quick ratio | 5.34 | 4.63 | 4.52 | 4.63 | 6.68 | 6.24 | 5.36 | 4.73 | 3.97 | 4.01 | 4.41 | 5.32 | 5.76 | 6.57 | 5.73 | 6.32 | 6.24 | 6.51 | 5.85 | 3.52 |
| Cash ratio | 4.49 | 3.80 | 3.71 | 3.73 | 5.48 | 4.90 | 4.08 | 3.59 | 2.95 | 3.14 | 3.49 | 4.26 | 4.64 | 5.37 | 4.63 | 5.20 | 5.23 | 5.43 | 4.69 | 2.35 |
Vicor Corporation's liquidity ratios indicate strong short-term financial health. The current ratio has shown a consistently high level over the past few years, ranging from 5.26 to 9.52, with an average around 7. This suggests the company has more than enough current assets to cover its current liabilities, providing a buffer for any unexpected financial obligations.
Similarly, the quick ratio, which excludes inventory from current assets, also demonstrates robust liquidity, ranging from 3.52 to 6.68, with an average of approximately 5.5. This ratio indicates that Vicor Corporation can quickly meet its short-term liabilities without relying heavily on inventory liquidation.
The cash ratio, which is the most stringent measure of liquidity, remains solid for Vicor Corporation, ranging from 2.35 to 5.48, with an average around 4. This ratio suggests the company has a sufficient amount of cash or cash equivalents to cover its current liabilities, providing financial stability even in the absence of inventory or receivables.
Overall, based on these liquidity ratios, Vicor Corporation appears to have a strong ability to meet its short-term financial obligations, which is crucial for maintaining operational efficiency and financial stability.
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 | 182.67 | 180.30 | 181.97 | 183.16 | 167.03 | 164.69 | 165.75 | 161.88 | 154.30 | 115.63 | 95.84 | 99.03 | 95.10 | 120.46 | 110.44 | 112.32 | 119.31 | 131.68 | 134.82 | 128.69 |
The cash conversion cycle (CCC) of Vicor Corporation has fluctuated over the past few years. It measures the average number of days it takes for the company to convert its investments in inventory back into cash.
From March 31, 2020, to December 31, 2022, the CCC gradually decreased, indicating an improvement in the efficiency of Vicor's operations in managing its inventory, accounts receivable, and accounts payable.
However, starting from March 31, 2023, there was a significant increase in the CCC, reaching a peak of 183.16 days by March 31, 2024. This suggests that Vicor may be facing challenges in efficiently managing its working capital, potentially leading to cash flow difficulties.
Overall, a lower CCC is generally preferred as it indicates that the company is able to quickly convert its investments in inventory into cash. Vicor should closely monitor its cash conversion cycle to identify any inefficiencies and take necessary steps to improve its working capital management.