ViaSat Inc (VSAT)

Cash ratio

Mar 31, 2025 Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021
Cash and cash equivalents US$ in thousands 1,612,100 1,901,030 1,348,850 310,459 295,949
Short-term investments US$ in thousands — — — — —
Total current liabilities US$ in thousands 1,676,650 1,295,880 956,719 770,421 708,437
Cash ratio 0.96 1.47 1.41 0.40 0.42

March 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,612,100K + $—K) ÷ $1,676,650K
= 0.96

The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. In the case of ViaSat Inc, the cash ratio has fluctuated over the past five years.

As of March 31, 2021, the cash ratio was 0.42, indicating that the company had $0.42 in cash and cash equivalents for every $1 of short-term liabilities. This ratio decreased slightly to 0.40 by March 31, 2022.

There was a significant improvement in the cash ratio by March 31, 2023, jumping to 1.41. This suggests that ViaSat Inc had more than enough cash to cover its short-term obligations at that point. The trend continued to March 31, 2024, with a cash ratio of 1.47, indicating a further enhancement of the company's liquidity position.

However, by March 31, 2025, the cash ratio declined to 0.96, showing a decrease in the company's ability to cover its short-term liabilities with its available cash. It is important for ViaSat Inc to monitor its cash position and ensure it maintains a healthy level of liquidity to meet its financial obligations in a timely manner.