Vontier Corp (VNT)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Cash | US$ in thousands | 340,900 | 204,500 | 572,600 | 380,500 |
| Short-term investments | US$ in thousands | — | 21,300 | — | — |
| Receivables | US$ in thousands | 601,200 | 610,200 | 571,800 | 539,100 |
| Total current liabilities | US$ in thousands | 955,300 | 929,900 | 933,400 | 838,300 |
| Quick ratio | 0.99 | 0.90 | 1.23 | 1.10 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($340,900K
+ $—K
+ $601,200K)
÷ $955,300K
= 0.99
The quick ratio of Vontier Corporation has shown some variability over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
In 2023, the quick ratio stood at 1.03, indicating that the company had $1.03 in liquid assets available to cover each $1 of its short-term liabilities. This suggests that Vontier had a stronger liquidity position in 2023 compared to 2022, where the quick ratio was 0.96.
Looking further back, the quick ratio was 1.28 in 2021, signaling a higher level of liquidity than in 2023. This may indicate that Vontier had a more robust ability to meet its short-term obligations in 2021. In 2020, the quick ratio was 1.13, falling slightly from 2021 but still reflecting a relatively healthy liquidity position.
In contrast, in 2019, the quick ratio was 0.90, indicating that Vontier had less liquidity to cover its short-term liabilities that year compared to subsequent years. However, it's worth noting that this ratio improved over time, indicating a positive trend in the company's liquidity management.
Overall, Vontier Corporation's quick ratio has fluctuated over the past five years, but the general trend shows an improvement in liquidity management. This suggests that the company has been more effective in maintaining liquid assets to meet its short-term obligations in recent years.
Peer comparison
Dec 31, 2023