NCR Voyix Corporation (VYX)

The analysis of NCR Voyix Corporation's liquidity ratios reveals a fluctuating trend over the past five years.

The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has shown a declining trend from 2019 to 2023, with a notable decrease from 1.24 in 2019 to 0.90 in 2023. This indicates a potential weakening in the company's short-term liquidity position.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity as it excludes inventory from current assets. NCR Voyix Corporation's quick ratio has exhibited a similar declining trajectory, falling from 0.79 in 2019 to 0.56 in 2023. This suggests that the company may have difficulty meeting its short-term obligations without relying on inventory liquidation.

The cash ratio, which focuses solely on cash and cash equivalents to cover current liabilities, has remained relatively stable over the five-year period, ranging between 0.16 and 0.20. While the cash ratio indicates a modest level of liquidity, it is important to note that the overall trend in liquidity ratios points towards potential challenges in meeting short-term financial obligations.

In summary, NCR Voyix Corporation's liquidity ratios reflect a concerning trend of decreasing liquidity over the past five years, raising questions about the company's ability to meet its short-term obligations without further analysis and consideration of other financial metrics.

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Additional liquidity measure

The cash conversion cycle of NCR Voyix Corporation has fluctuated significantly over the past five years. In 2023, the company's cash conversion cycle was -48.74 days, indicating a negative cycle where the company was able to convert its inventory into cash before paying suppliers. This was a significant improvement compared to the previous year's cycle of -11.70 days.

In 2021, the cash conversion cycle increased to 30.43 days, showing that the company took longer to convert its investment in inventory into cash. This was a reversal from the decreasing trend seen in the previous years. In 2020, the cycle further increased to 63.27 days, indicating a prolonged period between the company's cash outflows for inventory and cash inflows from sales.

The longest cash conversion cycle in the provided data was in 2019 at 74.55 days. This suggests that in that year, NCR Voyix Corporation faced challenges in efficiently managing its inventory, receivables, and payables, leading to a longer cycle.

Overall, NCR Voyix Corporation's cash conversion cycle has shown fluctuations over the past five years, with improvements in some years and deteriorations in others. Further analysis is needed to understand the specific drivers behind these changes and to identify potential areas for operational efficiency and working capital management improvements.