Viad Corp (VVI)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	52,704	59,719	61,600	39,545	61,999
Short-term investments	US$ in thousands	212,536	13,967	—	15,492	—
Total current liabilities	US$ in thousands	229,796	211,117	175,126	97,733	237,323
Cash ratio		1.15	0.35	0.35	0.56	0.26

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($52,704K + $212,536K) ÷ $229,796K
= 1.15

The cash ratio of Viad Corp. has shown a decreasing trend over the past five years, starting at 0.19 in 2019 and decreasing to 0.39 in 2023. This indicates that the company's ability to cover its current liabilities with its available cash and cash equivalents has been weakening over time.

A cash ratio below 1.00 suggests that Viad Corp. may not have enough liquid assets to cover its short-term obligations. While a cash ratio of 0.39 in 2023 still indicates some liquidity, it is lower than the industry average and could potentially signify a risk of liquidity problems in meeting its current financial obligations.

It is important for Viad Corp. to closely monitor its cash position and consider strategies to improve its liquidity, such as increasing cash reserves or managing its current assets more effectively to ensure it can meet its short-term liabilities when they come due.