Vista Outdoor Inc (VSTO)
Current ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,075,120 | 1,196,110 | 1,110,940 | 1,064,230 | 709,990 |
| Total current liabilities | US$ in thousands | 385,298 | 453,871 | 393,873 | 370,817 | 246,701 |
| Current ratio | 2.79 | 2.64 | 2.82 | 2.87 | 2.88 |
March 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,075,120K ÷ $385,298K
= 2.79
The current ratio of Vista Outdoor Inc has shown a relatively stable trend over the past five years. The company's current ratio ranged from 2.64 to 2.88 during this period, with the most recent figure standing at 2.79 as of March 31, 2024. This indicates that the company has sufficient current assets to cover its current liabilities.
A current ratio above 1 suggests that the company is able to meet its short-term obligations using its current assets. A higher current ratio indicates a stronger liquidity position and suggests that the company may be more capable of handling unexpected expenses or disruptions in cash flow.
Although the current ratio of Vista Outdoor Inc has fluctuated slightly over the years, it has generally remained above 2, reflecting a healthy liquidity position. This may indicate effective management of working capital and a reduced risk of financial distress in the short term.
Furthermore, comparing the current ratio to industry benchmarks and the company's historical performance can provide additional context for evaluating Vista Outdoor Inc's liquidity position and financial health.
Peer comparison
Mar 31, 2024