Vishay Intertechnology Inc (VSH)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,297,160 | 2,121,210 | 2,010,500 | 1,697,340 | 1,704,120 |
| Total current liabilities | US$ in thousands | 691,875 | 726,258 | 693,667 | 562,423 | 520,428 |
| Current ratio | 3.32 | 2.92 | 2.90 | 3.02 | 3.27 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,297,160K ÷ $691,875K
= 3.32
The current ratio of Vishay Intertechnology, Inc. has shown some variability over the past five years, ranging from a low of 2.90 in 2021 to a high of 3.32 in 2023. The current ratio measures the company's ability to cover its short-term liabilities with its current assets.
A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered a positive sign as it suggests the company is likely to be able to meet its short-term obligations. Vishay's current ratio has consistently been above 2 in recent years, indicating a strong ability to cover its short-term obligations.
The increase in the current ratio from 2.90 in 2021 to 3.32 in 2023 suggests an improvement in the company's liquidity position over this period. A higher current ratio may indicate increased financial stability and reduced risk of liquidity problems. However, it is important to consider the reasons behind this increase, as a very high current ratio may also signal inefficiency in asset utilization.
Overall, Vishay Intertechnology's current ratio has been generally strong and improving in recent years, indicating that the company has been effectively managing its short-term liquidity and maintaining a healthy balance between current assets and current liabilities.
Peer comparison
Dec 31, 2023