NCR Voyix Corporation (VYX)

Based on the provided data, NCR Voyix Corporation's liquidity ratios exhibit some fluctuations over the years.

1. Current Ratio: The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, decreased from 1.19 in 2020 to 0.90 in 2023, before recovering slightly to 1.18 in 2024. A current ratio above 1 is generally considered healthy, indicating the company can meet its short-term liabilities.

2. Quick Ratio: The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. NCR Voyix Corporation's quick ratio remained relatively stable, ranging between 0.16 and 0.51 over the years. A quick ratio above 1 signifies a strong ability to meet short-term obligations without relying on inventory sales.

3. Cash Ratio: The cash ratio, which focuses solely on a company's cash and cash equivalents to cover current liabilities, mimicked the trend seen in the quick ratio. It remained steady around 0.16 to 0.51. A higher cash ratio suggests a greater ability to settle short-term debts without relying on other current assets.

Overall, while the current ratio dipped below 1 in 2023, indicating potential liquidity challenges, the quick ratio and cash ratio remained relatively stable. However, the company should continue to monitor its liquidity position to ensure it can meet its financial obligations effectively.

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Additional liquidity measure

The cash conversion cycle of NCR Voyix Corporation has shown fluctuations over the past five years. As of December 31, 2020, the company had a cash conversion cycle of 46.84 days, which increased to 52.29 days by December 31, 2021. However, by December 31, 2022, the cycle decreased slightly to 47.07 days.

Notably, there was a significant improvement in efficiency by December 31, 2023, with the cash conversion cycle dropping to 32.33 days. This positive trend continued into December 31, 2024, with a further reduction to 33.79 days.

Overall, NCR Voyix Corporation appears to have effectively managed its cash conversion cycle over the years, with a notable improvement in 2023 and 2024, indicating efficient management of cash flows, inventory, and receivables.