Vontier Corp (VNT)

The current ratio for Vontier Corporation has been gradually decreasing over the past eight quarters, indicating a slight weakening in the company's short-term liquidity position. However, the current ratio has generally remained above 1, which suggests that the company has been able to meet its short-term obligations with its current assets.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown a decreasing trend over the quarters. This indicates that Vontier might have less ability to cover its short-term obligations with its most liquid assets. However, similar to the current ratio, the quick ratio has generally stayed above 1, implying that the company has a reasonable ability to meet its immediate financial commitments.

The cash ratio, representing the firm's ability to cover its short-term liabilities with its cash and cash equivalents, has been fluctuating over the quarters but generally on a decreasing trend. This suggests that Vontier may have less cash on hand relative to its current liabilities in recent periods. Nevertheless, the cash ratio has also mostly remained above 0.5, indicating the company has had a moderate ability to pay off its short-term obligations with its cash resources.

Overall, while there has been a slight deterioration in Vontier Corporation's liquidity ratios over the past few quarters, the company still appears to maintain a reasonably strong liquidity position, as evidenced by its ratios consistently remaining above the critical threshold levels.

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Additional liquidity measure

The cash conversion cycle of Vontier Corporation has shown fluctuations over the past eight quarters. In Q4 2022, the company had a cash conversion cycle of 41.36 days, which increased to 52.42 days in Q3 2022 before decreasing to 43.92 days in Q2 2022. The cycle then significantly decreased to 34.30 days in Q1 2022.

In 2023, the cash conversion cycle increased to 48.83 days in Q1, decreased to 50.84 days in Q2, and further decreased to 52.21 days in Q3. It then increased slightly to 43.27 days in Q4 2023.

Overall, Vontier Corporation's cash conversion cycle has experienced fluctuations, indicating variability in how efficiently the company is managing its liquidity, operating cycle, and accounts payable and receivable. Further analysis would be necessary to understand the specific reasons behind these fluctuations and their implications for the company's financial performance and management of working capital.