ViaSat Inc (VSAT)

Liquidity ratios

Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
Current ratio 2.68 2.71 2.62 2.33 2.35 1.47 1.43 1.55 1.50 1.31 1.45 1.52 1.40 1.51 1.67 1.63 1.73 1.39 1.51 1.64
Quick ratio 2.19 2.25 2.19 1.85 1.85 0.65 0.58 0.82 0.87 0.67 0.80 0.86 0.75 0.81 0.96 0.89 1.05 0.68 0.76 0.88
Cash ratio 1.47 1.20 1.27 1.42 1.41 0.21 0.19 0.31 0.40 0.21 0.30 0.37 0.42 0.49 0.56 0.41 0.50 0.09 0.17 0.27

ViaSat Inc's liquidity ratios show a generally improving trend over the recent quarters. The current ratio has been consistently above 1, indicating that the company has more than enough current assets to cover its current liabilities. Specifically, the current ratio has increased from 1.39 in March 2020 to 2.68 in March 2024, reflecting an enhanced liquidity position.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also seen an upward trend. The quick ratio increased from 0.68 in March 2020 to 2.19 in March 2024, showing a significant improvement in the company's ability to meet its short-term obligations without relying on inventory.

The cash ratio, which measures the company's ability to cover its current liabilities with its most liquid assets, has also exhibited a positive trend. It has increased steadily from 0.09 in December 2019 to 1.47 in March 2024, indicating that ViaSat Inc has a comfortable level of cash to meet its short-term obligations.

Overall, ViaSat Inc's liquidity ratios suggest that the company has strengthened its liquidity position over the recent quarters, indicating improved financial health and better ability to meet its short-term obligations.

Additional liquidity measure

Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
Cash conversion cycle days 96.94 108.79 99.47 43.39 48.90 78.93 80.54 122.17 46.51 106.55 144.33 145.92 164.19 174.53 148.27 132.79 125.67 140.41 139.68 139.14

The cash conversion cycle of ViaSat Inc has shown variability over the past few reporting periods. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from credit sales to customers.

From the data provided, we can observe fluctuations in the cash conversion cycle, indicating changes in the efficiency of ViaSat's working capital management. During the most recent quarter ending on March 31, 2024, the cash conversion cycle decreased to 96.94 days compared to the previous quarter's 108.79 days. This suggests an improvement in the company's ability to manage its inventory, accounts receivable, and accounts payable.

However, it is important to note that there have been instances where the cash conversion cycle has been relatively high, such as in the quarters ending on September 30, 2022, and December 31, 2021, where it stood at 80.54 days and 144.33 days, respectively. These longer cycles may indicate inefficiencies in working capital management, potentially leading to increased financing costs and reduced liquidity.

Overall, monitoring the cash conversion cycle is crucial for evaluating ViaSat Inc's operational efficiency and financial health. Trend analysis and comparisons with industry benchmarks can provide valuable insights into the company's ability to effectively manage its working capital and convert assets into cash.