Vistra Energy Corp (VST)
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 | 1.18 | 1.22 | 1.17 | 1.17 | 1.08 | 1.10 | 1.05 | 1.11 | 1.35 | 0.99 | 0.91 | 0.68 | 1.13 | 1.11 | 0.87 | 0.99 | 0.90 | 1.05 | 1.24 | 1.03 |
| Quick ratio | 0.59 | 0.69 | 0.41 | 0.31 | 0.31 | 0.26 | 0.30 | 0.28 | 0.54 | 0.30 | 0.80 | 0.77 | 1.29 | 1.17 | 0.46 | 0.48 | 0.47 | 0.66 | 0.67 | 0.56 |
| Cash ratio | 0.35 | 0.37 | 0.10 | 0.07 | 0.05 | 0.05 | 0.13 | 0.10 | 0.23 | 0.04 | 0.45 | 0.44 | 0.71 | 0.63 | 0.08 | 0.16 | 0.07 | 0.18 | 0.26 | 0.17 |
The current ratio, quick ratio, and cash ratio are important measures of liquidity for Vistra Corp, indicating the company's ability to meet its short-term obligations.
Looking at the trend over the past eight quarters, we can see slight fluctuations in the current ratio, starting at 1.08 in Q4 2022 and reaching a peak of 1.22 in Q3 2023. The current ratio then dipped to 1.18 in Q4 2023. This ratio suggests that the company has enough current assets to cover its current liabilities, with a higher ratio indicating a stronger ability to meet short-term obligations.
Similarly, the quick ratio shows a similar trend with fluctuations over the quarters, ranging from 1.02 in Q4 2022 to 1.14 in Q3 2023. The quick ratio accounts for the most liquid assets and excludes inventory from current assets. This ratio indicates that Vistra Corp has a sufficient level of liquid assets to cover its current liabilities, with a higher ratio being desirable.
The cash ratio, which is the most conservative liquidity ratio, shows a decline from 0.81 in Q4 2022 to 0.93 in Q4 2023. This ratio measures the company's ability to cover its current liabilities with its cash and cash equivalents alone. While the cash ratio is lower compared to the current and quick ratios, it still indicates that Vistra Corp has a reasonable level of cash reserves to meet its short-term obligations.
Overall, the liquidity ratios of Vistra Corp have shown a generally positive trend, with fluctuations quarter over quarter but remaining at levels that suggest the company is managing its short-term liquidity well.
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 | -47.30 | -46.11 | -50.62 | -51.87 | -198.99 | -165.13 | -181.23 | -168.55 | -222.27 | -155.46 | -94.09 | -119.75 | -35.15 | -41.05 | -50.36 | -47.10 | -119.85 | -141.32 | -88.12 | -83.14 |
The cash conversion cycle of Vistra Corp has shown fluctuating trends over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 21.83 days, indicating that it takes approximately 21.83 days for Vistra Corp to convert its investments in inventory and other resources into cash from sales. This represents an improvement compared to the previous quarter, Q3 2023, where the cash conversion cycle was higher at 28.88 days.
Looking back further, in Q2 2023 and Q1 2023, Vistra Corp's cash conversion cycle was 22.27 days and 22.81 days, respectively, suggesting a relatively stable performance in managing its working capital efficiency during that period. In comparison, in Q4 2022, the cash conversion cycle was slightly lower at 20.86 days, indicating a faster conversion of resources into cash.
The company showed a more efficient cash conversion cycle in Q3 2022, Q2 2022, and Q1 2022, with decreasing values of 18.31 days, 17.76 days, and -0.75 days, respectively. Notably, in Q1 2022, the cash conversion cycle was negative, implying that Vistra Corp was able to convert its investments into cash before actually paying for them, which is a strong indicator of effective working capital management.
Overall, Vistra Corp has demonstrated varying degrees of effectiveness in managing its cash conversion cycle over the past eight quarters, with some periods showing improvements and others facing challenges. Monitoring this ratio over time can provide insights into the company's operational efficiency and ability to generate cash flow from its core business activities.