ViaSat Inc (VSAT)

The liquidity ratios of ViaSat Inc show a generally positive trend over the past five years. The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has improved steadily from 1.73 in 2020 to 2.68 in 2024. This indicates that ViaSat Inc has a healthy level of current assets relative to its current liabilities.

Similarly, the quick ratio, which measures the company's ability to meet short-term obligations with its most liquid assets, has also shown improvement over the years, increasing from 1.05 in 2020 to 2.19 in 2024. This suggests that ViaSat Inc has a strong liquidity position and can quickly cover its short-term liabilities without relying on inventory.

The cash ratio, which is the most conservative liquidity measure as it assesses the company's ability to cover its current liabilities using only its cash and cash equivalents, has also improved from 0.50 in 2020 to 1.47 in 2024. This indicates that ViaSat Inc has a sufficient level of cash on hand to meet its short-term obligations.

Overall, the liquidity ratios of ViaSat Inc demonstrate a positive trend, with improvements in both the current ratio, quick ratio, and cash ratio over the past five years. This suggests that the company has strong liquidity and is well-positioned to meet its short-term financial commitments.

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Additional liquidity measure

ViaSat Inc's cash conversion cycle has fluctuated over the past five years. In the most recent fiscal year ending March 31, 2024, the company had a cash conversion cycle of 123.05 days, representing a significant increase from the previous year. This indicates that it took ViaSat Inc longer to convert its investments in inventory and other resources into cash during the latest period.

Compared to the fiscal year ending March 31, 2021, where the cash conversion cycle was 157.94 days, ViaSat Inc has improved its efficiency in managing its working capital in more recent years. In the fiscal year ending March 31, 2023, the company experienced a notably low cash conversion cycle of 35.32 days, suggesting a more efficient liquidity management strategy.

Overall, fluctuations in ViaSat Inc's cash conversion cycle indicate varying effectiveness in managing its cash flow and working capital over the past five years. The company should continue to monitor and optimize its cash conversion cycle to enhance operational efficiency and financial performance.