Vista Outdoor Inc (VSTO)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
Current ratio 2.79 2.58 2.30 2.33 2.64 2.39 2.28 2.81 2.82 2.64 3.27 3.07 2.87 2.52 2.46 2.68 2.88 2.90 2.79 2.96
Quick ratio 1.08 1.01 0.87 0.87 0.94 0.88 0.89 1.13 0.96 1.09 1.73 1.54 1.47 1.36 1.29 1.35 1.40 1.43 1.39 1.17
Cash ratio 0.16 0.13 0.08 0.12 0.19 0.14 0.11 0.09 0.06 0.09 0.67 0.57 0.66 0.29 0.17 0.13 0.13 0.13 0.08 0.09

The liquidity ratios of Vista Outdoor Inc over the past few quarters indicate fluctuating levels of short-term solvency and ability to meet its immediate financial obligations.

The current ratio has generally been above 2, showing that the company has twice as many current assets as current liabilities, which is considered healthy. However, there has been some variability in this ratio, with a peak of 3.27 in the third quarter of 2021 and a low of 2.28 in the third quarter of 2023.

The quick ratio, which excludes inventory from current assets, has also shown fluctuations, ranging from a low of 0.87 in multiple quarters to a high of 1.73 in the first quarter of 2021. This ratio indicates the company's ability to meet its short-term obligations without relying on selling inventory.

The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents, has varied significantly, with values as low as 0.06 in the first quarter of 2022 and as high as 0.67 in the third quarter of 2021. This ratio shows the company's immediate ability to cover its liabilities with its available cash resources.

Overall, while the current ratio generally indicates a healthy liquidity position for Vista Outdoor Inc, the fluctuations in the quick and cash ratios suggest that the company may have experienced some variability in its ability to meet short-term obligations using more stringent liquidity measures. It would be important to closely monitor these ratios to ensure the company maintains a strong liquidity position in the future.

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
Cash conversion cycle days 107.66 122.66 134.78 127.86 121.55 136.48 140.70 120.61 118.73 122.86 124.22 114.14 104.30 105.28 110.04 111.30 113.12 112.75 110.99 106.22

The cash conversion cycle of Vista Outdoor Inc has shown some fluctuations over the past quarters. The company's cash conversion cycle, which indicates the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, has ranged from around 104 days to 140 days over the last few years.

Typically, a shorter cash conversion cycle is considered more favorable as it reflects the company's ability to efficiently manage its working capital and generate cash flow. A longer cash conversion cycle can indicate inefficiencies in managing inventory, accounts receivable, and accounts payable.

The trend in Vista Outdoor Inc's cash conversion cycle seems to have improved in recent quarters, with a decrease observed in the most recent quarter compared to the previous periods. This could indicate better management of inventory, improved collection of receivables, or more efficient payment of payables.

It is important for Vista Outdoor Inc to continue monitoring and optimizing its cash conversion cycle to ensure efficient working capital management and healthy cash flows. By analyzing the factors contributing to the fluctuations in the cash conversion cycle, the company can identify areas for improvement and implement strategies to enhance its overall financial performance.