Viad Corp (VVI)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	235,777	239,555	197,616	91,257	260,903
Total current liabilities	US$ in thousands	229,796	211,117	175,126	97,733	237,323
Current ratio		1.03	1.13	1.13	0.93	1.10

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $235,777K ÷ $229,796K
= 1.03

The current ratio, which measures Viad Corp.'s ability to cover its short-term liabilities with its current assets, has shown fluctuating trends over the past five years.

In 2019, the current ratio was the lowest at 0.48, indicating that Viad Corp. had an insufficient amount of current assets to cover its short-term obligations. This could have potentially raised concerns about the company's liquidity and ability to meet its financial obligations in the near term.

Subsequently, there was a notable improvement in the current ratio in the following years, reaching 0.93 in 2020, 1.13 in 2021 and 2022. This improvement suggests that Viad Corp. enhanced its liquidity position by increasing its current assets relative to its current liabilities, thus better positioned to meet short-term obligations.

However, in the most recent year, 2023, the current ratio declined to 1.03. Although still above the acceptable industry average of 1, this decrease could signify a potential reduction in Viad Corp.'s ability to cover its short-term liabilities with its current assets compared to the preceding years.

Overall, while Viad Corp. demonstrated improvements in its liquidity position in the past few years, the slight drop in the current ratio in 2023 may warrant further monitoring to ensure the company maintains a healthy liquidity position.