Vishay Intertechnology Inc (VSH)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.70 | 2.81 | 2.98 | 3.02 | 3.32 | 3.40 | 3.16 | 3.08 | 2.92 | 2.94 | 2.94 | 3.06 | 2.90 | 3.06 | 2.99 | 3.03 | 3.02 | 3.21 | 3.22 | 3.52 |
| Quick ratio | 0.86 | 0.92 | 1.03 | 1.18 | 1.46 | 1.64 | 1.46 | 1.38 | 1.26 | 1.28 | 1.20 | 1.31 | 1.33 | 1.42 | 1.34 | 1.33 | 1.38 | 1.41 | 1.50 | 1.68 |
| Cash ratio | 0.86 | 0.92 | 1.03 | 1.18 | 1.46 | 1.64 | 1.46 | 1.38 | 1.26 | 1.28 | 1.20 | 1.31 | 1.33 | 1.42 | 1.34 | 1.33 | 1.38 | 1.41 | 1.50 | 1.68 |
Looking at Vishay Intertechnology Inc's liquidity ratios over the past few years, we can observe the following trends:
1. Current Ratio: The current ratio measures the company's ability to meet its short-term obligations with its current assets. Vishay Intertechnology Inc has maintained a consistently high current ratio above 2.5, indicating a strong ability to cover its short-term liabilities. Although there was a slight decrease from 3.52 in March 2020 to 2.70 in December 2024, the current ratio remained above 2, suggesting the company has a solid liquidity position.
2. Quick Ratio: 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 Inc's quick ratio has shown some fluctuations over the years, ranging from 0.86 in December 2024 to 1.64 in September 2023. Overall, the quick ratio has generally been above 1, indicating the company's ability to meet its short-term obligations without relying on selling inventory.
3. Cash Ratio: The cash ratio is the most conservative liquidity measure as it only includes cash and cash equivalents in the numerator. Vishay Intertechnology Inc's cash ratio followed a similar trend to the quick ratio, with fluctuations over the years and a decline to 0.86 in December 2024. The cash ratio remaining above 1 in most periods indicates that the company has a sufficient level of cash to cover its short-term liabilities.
In conclusion, based on the analysis of Vishay Intertechnology Inc's liquidity ratios, the company appears to have maintained a strong liquidity position overall, with consistently high current ratios, albeit some fluctuations in the quick and cash ratios. These ratios suggest that the company has been effectively managing its short-term liquidity needs and has the ability to meet its obligations in the near future.
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 108.87 | 107.96 | 104.06 | 100.80 | 97.36 | 95.91 | 97.60 | 98.39 | 92.64 | 91.93 | 96.48 | 92.24 | 83.24 | 86.24 | 86.03 | 85.81 | 85.21 | 85.50 | 87.72 | 85.76 |
The cash conversion cycle of Vishay Intertechnology Inc has shown some fluctuations over the periods analyzed. The company's cash conversion cycle, which measures the time it takes for a company to convert its investment in inventory into cash from sales, ranged from a low of 83.24 days to a high of 108.87 days during the period from March 31, 2020, to December 31, 2024.
In general, a longer cash conversion cycle indicates that the company takes more time to turn its inventory into cash, which could potentially strain its working capital and liquidity. For Vishay Intertechnology Inc, the trend seems to show an increasing cash conversion cycle over the years, with a noticeable spike in the cycle duration towards the end of the period in question.
A high cash conversion cycle can have negative implications for a company's financial health, as it may indicate inefficiencies in inventory management, collection of receivables, or payment of payables. Therefore, it is essential for Vishay Intertechnology Inc to closely monitor and manage its cash conversion cycle to ensure optimal working capital management and overall financial performance.