Vishay Intertechnology Inc (VSH)
Liquidity ratios
| 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 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 3.27 | 3.52 | 3.41 | 3.09 |
| Quick ratio | 2.07 | 2.26 | 2.05 | 1.38 | 1.83 | 1.28 | 1.20 | 1.31 | 1.90 | 1.42 | 1.34 | 1.33 | 1.38 | 1.41 | 1.50 | 1.68 | 1.54 | 1.64 | 1.55 | 1.32 |
| Cash ratio | 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 | 1.54 | 1.64 | 1.55 | 1.32 |
Vishay Intertechnology, Inc. has exhibited strong liquidity positions over the past eight quarters as evidenced by consistently high current ratios. The current ratio has remained above 3 for the most recent quarters, indicating that the company has more than enough current assets to cover its current liabilities. This suggests that Vishay Intertechnology has sufficient short-term liquidity to meet its obligations as they come due.
In terms of quick ratio, the company has also maintained healthy levels above 2 for the same period. The quick ratio, which excludes inventory from current assets, provides a more stringent measure of liquidity. The stable trend in the quick ratio indicates that Vishay Intertechnology possesses ample liquid assets to cover its short-term liabilities without relying on selling inventory.
Additionally, the cash ratio, which is the most stringent liquidity measure as it only considers cash and cash equivalents, has consistently been above 1 over the eight quarters. This means that the company has enough cash on hand to cover its current liabilities immediately. The trend in the cash ratio demonstrates that Vishay Intertechnology has maintained a robust cash position, which is crucial for meeting its short-term obligations and unforeseen expenses.
Overall, based on the liquidity ratios analyzed, Vishay Intertechnology, Inc. appears to have a strong financial position in terms of liquidity, with ample current assets to cover its short-term liabilities, both with and without considering inventory levels.
Additional liquidity measure
| 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 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 114.42 | 111.53 | 109.69 | 65.46 | 107.77 | 58.51 | 59.42 | 56.17 | 88.48 | 50.35 | 48.05 | 48.38 | 47.92 | 54.61 | 58.67 | 56.62 | 47.11 | 53.23 | 51.59 | 48.47 |
To analyze Vishay Intertechnology, Inc.'s cash conversion cycle, we need to understand that this metric measures how long a company takes to convert its investments in inventory and other inputs into cash flows from sales.
Looking at the data provided in the table, we observe that the cash conversion cycle for Vishay Intertechnology, Inc. has been relatively stable over the past few quarters, ranging from 102.03 days to 114.42 days.
The company's cash conversion cycle increased from Q1 2022 to Q2 2022, peaked in Q4 2022, and has shown a slight decrease since then. This indicates that the company may have experienced challenges in managing its working capital efficiently in the recent past but has made some improvements more recently.
Overall, the average cash conversion cycle for Vishay Intertechnology, Inc. appears to be around 108 days. This relatively long cycle suggests that the company may be facing challenges in efficiently managing its inventory, receivables, and payables to optimize its cash flow.
In conclusion, Vishay Intertechnology, Inc. should focus on streamlining its working capital management processes to potentially reduce its cash conversion cycle and improve its overall liquidity and financial performance.