Vishay Intertechnology Inc (VSH)

Based on the provided data, Vishay Intertechnology, Inc. has demonstrated strong liquidity over the past five years, as evidenced by the consistently high values of its liquidity ratios.

The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has shown a generally increasing trend from 2019 to 2023. At the end of 2023, the current ratio stands at 3.32, indicating that Vishay Intertechnology has $3.32 in current assets for every $1 in current liabilities.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Vishay Intertechnology's quick ratio has also followed an upward trajectory over the five-year period, reaching 2.38 at the end of 2023. This implies that the company can cover its short-term obligations with its most liquid assets (excluding inventory) 2.38 times over.

Furthermore, the cash ratio, which focuses specifically on the company's ability to cover current liabilities with its cash and equivalents, also showcases an increasing trend from 2019 to 2023. At the end of 2023, the cash ratio for Vishay Intertechnology is 1.77, indicating that the company has $1.77 in cash and equivalents to cover every $1 of short-term liabilities.

Overall, the consistently high values of the current ratio, quick ratio, and cash ratio for Vishay Intertechnology, Inc. suggest that the company is well-positioned to meet its short-term obligations and has a strong liquidity position to support its operations and growth initiatives.

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Additional liquidity measure

The cash conversion cycle of Vishay Intertechnology, Inc. has exhibited fluctuations over the past five years. In 2023, the company's cash conversion cycle increased to 114.42 days from 107.77 days in 2022. This indicates that the company took longer to convert its investments in inventory back into cash during the most recent fiscal year.

Comparing to 2021, where the cash conversion cycle was 88.48 days, a significant increase in 2023 suggests a potential inefficiency in managing its working capital. However, in 2020 and 2019, the company also experienced higher cash conversion cycle periods, which could be attributed to various factors such as changes in operating activities or industry dynamics.

It is important for Vishay Intertechnology to monitor and analyze its cash conversion cycle regularly to identify areas for improvement in working capital management. A longer cash conversion cycle can tie up cash resources and impact liquidity, while a shorter cycle indicates efficient operations and faster cash turnover.