ViaSat Inc (VSAT)

ViaSat Inc's liquidity position has shown improvement over the years based on its liquidity ratios.

1. Current Ratio:
- The current ratio has increased steadily from 1.40 in March 31, 2021, to 2.68 in March 31, 2024, before slightly dropping to 1.72 in March 31, 2025.
- This indicates that ViaSat Inc's ability to meet its short-term obligations with its current assets has improved, peaking in 2024.

2. Quick Ratio:
- The quick ratio has also shown a positive trend, rising from 0.75 in March 31, 2021, to 2.19 in March 31, 2024, then declining to 1.28 in March 31, 2025.
- This ratio accounts for only the most liquid assets, excluding inventory, suggesting the company has a strong capability to cover its short-term liabilities with its most liquid assets.

3. Cash Ratio:
- The cash ratio has fluctuated over the years, with the highest value of 1.47 in March 31, 2024, and the lowest of 0.40 in March 31, 2022.
- While not as high as the quick ratio, the cash ratio indicates ViaSat Inc's ability to cover its current liabilities with its cash and equivalents, showing a relatively strong cash position to meet short-term obligations.

Overall, the uptrend in the current and quick ratios, despite a slight dip in the latest year, reflects an improvement in ViaSat Inc's liquidity position. The cash ratio, although fluctuating, also indicates a reasonable level of liquidity. However, further monitoring is recommended to ensure sustainable liquidity management in the future.

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Additional liquidity measure

The cash conversion cycle of ViaSat Inc has shown fluctuations over the years based on the provided data.

- As of March 31, 2021, the cash conversion cycle was 83.30 days, indicating that it took the company an average of 83.30 days to convert its investments in inventory and other resources into cash flows from sales.

- By March 31, 2022, the cash conversion cycle improved to 67.44 days, suggesting more efficient management of working capital and faster conversion of assets into cash.

- The trend continued to improve as of March 31, 2023, with a further decrease in the cash conversion cycle to 59.37 days, highlighting enhanced operational efficiency and potentially better inventory management.

- However, the cycle increased by March 31, 2024, to 83.93 days, indicating a potential lag in the conversion of resources into cash flows, which could result from various operational challenges or changes in the company's business environment.

- The most recent data for March 31, 2025, shows a significant improvement in the cash conversion cycle, dropping to 47.14 days. This suggests that ViaSat Inc has managed to streamline its operations and optimize working capital management effectively.

Overall, the fluctuation in the cash conversion cycle over the years indicates varying degrees of efficiency in managing working capital and converting assets into cash. It is crucial for the company to continue monitoring and improving this cycle to ensure optimal financial performance and liquidity management.