Vontier Corp (VNT)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 340,900 | 263,600 | 244,000 | 208,200 | 204,500 | 121,700 | 127,400 | 145,100 | 572,600 | 458,900 | 703,400 | 670,300 |
| Short-term investments | US$ in thousands | — | — | — | — | 21,300 | 67,100 | 135,100 | 215,100 | — | — | — | — |
| Total current liabilities | US$ in thousands | 955,300 | 867,700 | 846,200 | 883,100 | 929,900 | 875,300 | 850,100 | 848,300 | 933,400 | 872,300 | 778,700 | 798,200 |
| Cash ratio | 0.36 | 0.30 | 0.29 | 0.24 | 0.24 | 0.22 | 0.31 | 0.42 | 0.61 | 0.53 | 0.90 | 0.84 |
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 a gradual increase over the past eight quarters, from 0.41 in Q4 2022 to 0.50 in Q4 2023. This indicates that the company has been able to improve its ability to cover its short-term liabilities with its available cash and cash equivalents.
A cash ratio of 0.50 in Q4 2023 means that for every dollar of current liabilities, Vontier has $0.50 in cash and cash equivalents on hand. This ratio suggests that the company is in a relatively healthy financial position with a sufficient level of liquid assets to meet its short-term obligations.
The consistent increase in the cash ratio over the quarters reflects positively on Vontier's liquidity management and ability to efficiently manage its cash flow. A higher cash ratio indicates a lower risk of financial distress and demonstrates the company's capacity to weather unforeseen financial challenges.
Overall, the trend of the cash ratio for Vontier Corporation is encouraging and suggests that the company is effectively managing its liquidity to support its operations and meet its financial obligations.
Peer comparison
Dec 31, 2023