Vontier Corp (VNT)

Based on the provided data, let's analyze the liquidity ratios of Vontier Corp:

1. Current Ratio:
- Vontier Corp's current ratio fluctuated over the measured periods, ranging from a low of 1.39 to a high of 1.69.
- The current ratio provides insights into Vontier's ability to cover its short-term liabilities with its current assets.
- Despite some fluctuations, the current ratio generally stayed above 1, indicating that the company had more current assets than current liabilities.

2. Quick Ratio:
- Vontier Corp's quick ratio also varied during the period, falling as low as 0.31 and reaching a peak of 1.21.
- The quick ratio is a more stringent measure of liquidity as it excludes inventory from current assets.
- The company's quick ratio generally improved over time, reflecting a more stable liquidity position compared to the current ratio.

3. Cash Ratio:
- Vontier Corp's cash ratio ranged from 0.22 to 0.47 over the period analyzed.
- The cash ratio assesses the company's ability to cover its current liabilities with its cash and cash equivalents.
- The cash ratio exhibited fluctuations, but generally showed an increasing trend from initial periods to later periods.

Overall, Vontier Corp maintained reasonable liquidity levels throughout the analyzed period, with the current, quick, and cash ratios indicating the company's ability to meet its short-term financial obligations. However, fluctuations in these ratios highlight the importance of continuous monitoring of liquidity position to ensure financial stability and operational efficiency.

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Additional liquidity measure

The cash conversion cycle of Vontier Corp provides valuable insights into the company's efficiency in managing its cash flow and working capital needs. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Analyzing the trend of Vontier Corp's cash conversion cycle over the reported periods, we observe fluctuations in the cycle duration. From December 2021 to March 2024, we can see variations in days taken to convert investments into cash, with some quarters showing improvements and others indicating extension in the cycle.

The trend started at 50.11 days in December 2021 and showed a slight decrease to 49.46 days in March 2022. However, we then observed an increase in the cycle duration, reaching 66.20 days by September 2022. This sudden increase could be a signal of potential inefficiencies or issues in the company's cash conversion process.

As we move forward in the timeline, the trend began to fluctuate, showing improvements and setbacks periodically. Notably, the cycle decreased to 37.47 days by December 2023, indicating a positive development in the company's working capital management. Yet, there was a subsequent increase to 66.17 days by September 2023, signifying potential challenges in cash flow management during that period.

The most recent data point available is a cycle duration of 57.27 days in December 2024. This figure suggests that Vontier Corp took around 57 days to convert its investments into cash during that period.

In summary, a thorough examination of Vontier Corp's cash conversion cycle reveals fluctuations in efficiency in converting investments into cash over the reported periods. It is essential for the company to continuously monitor and manage its working capital effectively to optimize its cash flow operations and maintain a healthy financial position.