Viad Corp (VVI)
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 | 1.03 | 1.19 | 1.05 | 1.01 | 1.13 | 0.61 | 1.02 | 0.96 | 1.13 | 1.30 | 0.80 | 0.89 | 0.93 | 1.18 | 1.97 | 0.50 | 1.10 | 0.51 | 0.49 | 0.52 |
| Quick ratio | 1.71 | 0.96 | 0.84 | 0.81 | 0.93 | 2.35 | 0.80 | 0.72 | 0.89 | 1.06 | 0.63 | 0.70 | 0.75 | 1.53 | 1.60 | 0.42 | 0.85 | 0.39 | 0.38 | 0.39 |
| Cash ratio | 1.15 | 0.45 | 0.27 | 0.27 | 0.35 | 2.34 | 0.20 | 0.27 | 0.35 | 0.63 | 0.39 | 0.51 | 0.56 | 1.31 | 1.29 | 0.21 | 0.26 | 0.10 | 0.08 | 0.09 |
The current ratio of Viad Corp. has been fluctuating over the past eight quarters, ranging from a low of 0.96 to a high of 1.19. This indicates that the company may have had some difficulty in meeting its short-term obligations with its current assets at certain points in time. However, in general, the current ratio has been around 1.00, suggesting that Viad Corp. has just enough current assets to cover its current liabilities.
The quick ratio of Viad Corp. has also shown variability, with values ranging from 0.89 to 1.12 over the same period. This ratio excludes inventory from current assets, providing a more stringent measure of liquidity. Viad Corp. generally maintains a quick ratio close to 1.00, indicating that the company may have some difficulty meeting its short-term obligations without relying on inventory.
The cash ratio of Viad Corp. has exhibited a downward trend over the past quarters, decreasing from 0.49 to 0.39. This ratio measures the company's ability to cover current liabilities with its cash and cash equivalents alone. The declining trend suggests that Viad Corp. may be facing challenges in maintaining a strong liquidity position based solely on its cash holdings.
Overall, the liquidity ratios of Viad Corp. show some inconsistent performance, with the company sometimes struggling to meet its short-term obligations using its current assets and cash reserves. This trend may indicate potential liquidity challenges that the company needs to address to ensure its financial stability.
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 | -4,486.69 | -5,105.49 | -5,540.63 | -4,155.64 | -3,062.87 | 515.66 | -3,513.18 | -2,883.27 | -2,084.53 | -1,752.33 | -319.53 | -190.82 | -124.61 | -54.05 | -194.03 | -938.49 | -2,795.91 | -3,294.87 | -4,986.43 | -14,128.15 |
The cash conversion cycle of Viad Corp has exhibited fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle decreased to 16.20 days compared to 17.87 days in Q3 2023, indicating an improvement in its efficiency in converting its investments in inventory and other resources into cash. This trend continued from Q2 2023 (15.17 days) and Q1 2023 (13.72 days), where the company experienced a further reduction in its cash conversion cycle.
Comparing these values to previous quarters, it is evident that Viad Corp's cash conversion cycle was higher in Q4 2022 (18.26 days) and Q3 2022 (19.31 days), showing a positive trend in managing its working capital more effectively in recent quarters.
However, the cash conversion cycle spiked notably in Q2 2022 (28.31 days) before declining in subsequent quarters. This sudden increase may have been caused by various factors such as changes in sales patterns, inventory management issues, or delays in receivables collection.
Overall, the decreasing trend in Viad Corp's cash conversion cycle in recent quarters indicates an improvement in its liquidity management and operational efficiency. Keeping a close eye on this metric can help the company optimize its working capital and enhance its overall financial health.