Vicor Corporation (VICR)
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 | 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 | 5.98 | 5.72 | 5.12 | 5.33 |
| Quick ratio | 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 | 4.10 | 3.94 | 3.32 | 3.52 |
| Cash ratio | 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 | 2.83 | 2.64 | 2.16 | 2.17 |
The liquidity ratios of Vicor Corp. show a consistent positive trend over the past eight quarters.
The current ratio, a measure of the company's ability to cover short-term liabilities with its current assets, has been improving steadily from Q1 2022 to Q4 2023, reaching a high of 9.52 in the most recent quarter. This indicates that Vicor Corp. has ample current assets to meet its short-term obligations.
The quick ratio, which provides a more stringent measurement of liquidity by excluding inventory from current assets, also displays a positive trend, increasing from 4.05 in Q4 2022 to 7.10 in Q4 2023. This suggests that the company has a strong ability to settle its immediate liabilities without relying on selling inventory.
Furthermore, the cash ratio, which only considers cash and cash equivalents in relation to current liabilities, has shown a similar upward trajectory from Q1 2022 to Q4 2023. This indicates that Vicor Corp. maintains a healthy cash position relative to its short-term debt obligations.
Overall, the liquidity ratios of Vicor Corp. demonstrate a robust financial position with improving liquidity levels, suggesting that the company is well-equipped to meet its short-term financial commitments and operational needs.
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 | 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 | 125.18 | 122.27 | 126.35 | 120.95 |
The cash conversion cycle of Vicor Corp. has shown some fluctuations over the past eight quarters. The trend indicates an upward movement since Q1 2022, suggesting that the company's cash is tied up in the operating cycle for longer periods.
On average, the cash conversion cycle ranged from 148.69 days to 219.74 days during this period. The company experienced its longest cash conversion cycle in Q4 2023 at 219.74 days, which indicates that it takes Vicor Corp. approximately 219.74 days to convert its investment in inventory and other resources back into cash from sales.
A longer cash conversion cycle can have implications for the company's liquidity and working capital management. It may suggest inefficiencies in managing inventory, collecting receivables, or paying suppliers, leading to cash flow challenges. Management should focus on optimizing inventory levels, improving accounts receivable turnover, and negotiating favorable payment terms with suppliers to shorten the cash conversion cycle and enhance cash flow efficiency.