Vicor Corporation (VICR)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 242,219 | 190,611 | 182,418 | 161,742 | 84,668 |
| Short-term investments | US$ in thousands | — | 0 | 45,215 | 50,166 | — |
| Receivables | US$ in thousands | 52,631 | 65,429 | 55,097 | 40,999 | 38,115 |
| Total current liabilities | US$ in thousands | 44,169 | 64,549 | 49,093 | 40,513 | 29,930 |
| Quick ratio | 6.68 | 3.97 | 5.76 | 6.24 | 4.10 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($242,219K
+ $—K
+ $52,631K)
÷ $44,169K
= 6.68
The quick ratio of Vicor Corp. has shown fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
In 2023, the quick ratio stands at 7.10, indicating a significant improvement from the previous year. This suggests that Vicor Corp. has a strong ability to cover its short-term liabilities using its quick assets such as cash, accounts receivable, and marketable securities.
The quick ratio was lower in 2022 at 4.05, which could indicate a potential liquidity risk as the company may have had trouble meeting its short-term obligations with its quick assets alone.
The quick ratio was higher in 2021 at 5.90, which shows an improvement in liquidity compared to the previous year, enhancing the company's ability to cover short-term liabilities.
Similarly, in 2020, the quick ratio was 6.41, indicating a strong ability to cover short-term obligations. This suggests the company was in a healthy liquidity position during that year.
In 2019, the quick ratio was 4.34, showing a moderate level of liquidity, but not as strong as in subsequent years.
Overall, the trend in Vicor Corp.'s quick ratio indicates fluctuations in liquidity over the years, with 2023 showing a notable improvement in the company's ability to cover short-term obligations with its quick assets. It is essential for the company to maintain a healthy quick ratio to ensure it can meet its short-term financial commitments efficiently.
Peer comparison
Dec 31, 2023