Vistra Energy Corp (VST)

Based on the provided data, the liquidity ratios of Vistra Energy Corp show fluctuations over the years.

1. Current Ratio:
- The current ratio measures the company's ability to cover its short-term obligations with its current assets.
- Vistra Energy Corp had a current ratio of 1.13 in 2020, which increased to 1.35 in 2021, indicating an improvement in liquidity.
- However, the ratio dropped to 1.08 in 2022, recovered slightly to 1.18 in 2023, and then decreased again to 0.96 in 2024, which may suggest potential challenges in meeting short-term obligations.

2. Quick Ratio:
- The quick ratio measures the company's ability to pay off its current liabilities without relying on the sale of inventory.
- Vistra Energy Corp had a low quick ratio of 0.14 in 2020, which improved to 0.23 in 2021, but then dropped significantly to 0.05 in 2022.
- The ratio increased to 0.36 in 2023, indicating a better position to meet short-term obligations, but declined again to 0.14 in 2024, showing some volatility.

3. Cash Ratio:
- The cash ratio specifically evaluates the company's ability to cover its current liabilities with its cash and cash equivalents.
- Vistra Energy Corp had a cash ratio of 0.14 in 2020, which improved to 0.23 in 2021, declined sharply to 0.05 in 2022, and then recovered to 0.36 in 2023.
- The ratio fell back to 0.14 in 2024, reflecting fluctuations in the company's cash position over the years.

Overall, the liquidity ratios of Vistra Energy Corp indicate some volatility in its ability to meet short-term obligations, with fluctuations in current, quick, and cash ratios. This suggests that the company may need to closely monitor its liquidity position and manage its short-term assets and liabilities effectively to ensure financial stability and meet its obligations in a timely manner.

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Additional liquidity measure

The cash conversion cycle of Vistra Energy Corp has shown fluctuations over the past five years. As of December 31, 2020, the company's cash conversion cycle was 27.66 days, indicating that it took approximately 27.66 days for the company to convert its investments in inventory into cash receipts from sales.

By December 31, 2021, the cash conversion cycle improved to 20.75 days, suggesting that the company was able to manage its inventory, accounts receivable, and accounts payable more efficiently, leading to a shorter cycle.

In the following year, by December 31, 2022, the cash conversion cycle further decreased to 17.27 days, demonstrating continued operational efficiency in converting its resources into cash.

However, by December 31, 2023, there was a slight increase in the cash conversion cycle to 29.17 days, indicating potential challenges in managing working capital efficiently during that period.

Finally, by December 31, 2024, the cash conversion cycle increased to 36.50 days, signaling a lengthening of the time it takes for the company to convert its investments into cash receipts.

Overall, Vistra Energy Corp has experienced fluctuations in its cash conversion cycle over the past five years, with periods of improvement and challenges in efficiently managing its working capital to convert investments into cash.