Vontier Corp (VNT)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 356,400 | 340,900 | 204,500 | 572,600 | 380,500 |
| Short-term investments | US$ in thousands | — | — | 21,300 | — | — |
| Receivables | US$ in thousands | 631,100 | 601,200 | 610,200 | 571,800 | 539,100 |
| Total current liabilities | US$ in thousands | 909,200 | 955,300 | 929,900 | 933,400 | 838,300 |
| Quick ratio | 1.09 | 0.99 | 0.90 | 1.23 | 1.10 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($356,400K
+ $—K
+ $631,100K)
÷ $909,200K
= 1.09
The quick ratio of Vontier Corp has exhibited some fluctuations over the past five years. As of December 31, 2020, the quick ratio stood at 1.10, indicating that the company had $1.10 in liquid assets available to cover each $1 of current liabilities.
By December 31, 2021, the quick ratio had increased to 1.23, suggesting an improvement in the company's liquidity position. This means Vontier Corp had $1.23 in quick assets for every $1 of current liabilities.
However, in the subsequent years, there was a slight decrease in the quick ratio. As of December 31, 2022, the quick ratio declined to 0.90, indicating a potential liquidity challenge as the company had $0.90 in liquid assets to cover each dollar of short-term obligations.
By December 31, 2023, the quick ratio improved slightly to 0.99, though it still remained below the ideal threshold of 1. This suggests that Vontier Corp may have faced some liquidity constraints during this period.
As of the most recent data available, December 31, 2024, the quick ratio was recorded at 1.09, showing a recovery in the company's liquidity position compared to the previous year. This implies that Vontier Corp had $1.09 in quick assets for every $1 of current liabilities.
Overall, the trend in the quick ratio of Vontier Corp reflects some variability in its liquidity management over the years, with fluctuations above and below the desirable benchmark of 1. Further analysis of the company's asset composition and short-term liabilities may provide insights into the factors driving these changes in liquidity ratios.
Peer comparison
Dec 31, 2024