Vishay Intertechnology Inc (VSH)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 590,286 | 972,719 | 610,825 | 774,108 | 619,874 |
| Short-term investments | US$ in thousands | 16,130 | 35,808 | 305,272 | 146,743 | 158,476 |
| Total current liabilities | US$ in thousands | 708,348 | 691,875 | 726,258 | 693,667 | 562,423 |
| Cash ratio | 0.86 | 1.46 | 1.26 | 1.33 | 1.38 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($590,286K
+ $16,130K)
÷ $708,348K
= 0.86
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. Looking at Vishay Intertechnology Inc's cash ratio over the past five years, we observe fluctuations in the ratio.
As of December 31, 2020, the cash ratio was 1.38, indicating that the company had $1.38 in cash and cash equivalents for every dollar of short-term liabilities, suggesting a strong liquidity position. However, there was a slight decrease in the cash ratio to 1.33 by December 31, 2021, which could imply a potential decrease in the company's ability to cover its short-term obligations solely with cash.
Further decline was seen in the cash ratio as of December 31, 2022, at 1.26, indicating a continued reduction in liquidity. However, the cash ratio improved significantly to 1.46 as of December 31, 2023, suggesting a stronger ability to meet short-term obligations with available cash resources.
The most notable change occurred by December 31, 2024, with the cash ratio dropping to 0.86. This significant decrease could raise concerns about the company's liquidity position, as the ability to cover short-term liabilities with cash has decreased considerably.
In conclusion, while the cash ratio fluctuated over the past five years for Vishay Intertechnology Inc, the downward trend observed from 2022 to 2024 may signal a potential liquidity challenge that warrants further investigation and monitoring.
Peer comparison
Dec 31, 2024