Vontier Corp (VNT)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 340,900 | 204,500 | 572,600 | 380,500 |
| Short-term investments | US$ in thousands | — | 21,300 | — | — |
| Total current liabilities | US$ in thousands | 955,300 | 929,900 | 933,400 | 838,300 |
| Cash ratio | 0.36 | 0.24 | 0.61 | 0.45 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($340,900K
+ $—K)
÷ $955,300K
= 0.36
The cash ratio of Vontier Corporation has shown some fluctuations over the past five years. The ratio was highest in 2021 at 0.76, indicating that the company had sufficient cash and cash equivalents to cover 76% of its current liabilities. This was a positive sign of liquidity and financial health.
However, in 2019, the cash ratio was only 0.17, suggesting a lower level of liquidity compared to the other years. This could be a cause for concern as it indicates that the company had only 17% of the necessary cash to cover its current liabilities at that time.
Overall, the fluctuations in the cash ratio of Vontier Corporation over the years indicate some variability in the company's liquidity position. It would be important for stakeholders to monitor this ratio closely to ensure that the company maintains an adequate level of cash to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023