NCR Voyix Corporation (VYX)

The Current Ratio of NCR Voyix Corporation has experienced fluctuations over the years, ranging from a high of 1.80 in June 2020 to a low of 0.85 in June 2024. The ratio indicates the company's ability to cover its short-term obligations with its current assets, with a ratio above 1 generally considered healthy. However, the declining trend in recent years, dropping to 0.90 by December 2023 and 0.85 by June 2024, raises concerns about the company's liquidity position.

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 has generally been lower than the Current Ratio, reflecting the company's reliance on inventory to meet short-term obligations. The ratio ranged from a low of 0.14 in multiple quarters to a high of 0.73 in June 2020. The ratio improved slightly towards the end of the period, reaching 0.52 by September 2024.

The Cash Ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, aligns closely with the Quick Ratio for NCR Voyix Corporation. The ratio hovered around 0.14 to 0.26 for most quarters, demonstrating the company's limited cash reserves relative to its current liabilities. The ratio peaked at 0.73 in June 2020 before declining and stabilizing around 0.18 to 0.21 in the most recent quarters.

Overall, NCR Voyix Corporation's liquidity ratios indicate a mixed performance, with the Current Ratio showing a declining trend, while the Quick and Cash Ratios remain relatively stable but at low levels. Management should closely monitor the liquidity position and take proactive measures to strengthen the company's ability to meet its short-term obligations.

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Additional liquidity measure

The cash conversion cycle of NCR Voyix Corporation has exhibited some variability over the past several quarters. The company's cash conversion cycle, which measures the time it takes for a company to convert its investments in inventory and other resources into cash received from sales, has shown a fluctuating trend.

From March 31, 2020, to December 31, 2023, the cash conversion cycle ranged from approximately 19.09 days to 58.88 days, demonstrating fluctuations in the company's ability to efficiently manage its working capital. During this period, there were periods of both shorter and longer cash conversion cycles, indicating potential challenges in managing inventories, accounts payable, and accounts receivable effectively.

However, towards the end of 2023 and into 2024, there was a notable improvement in the cash conversion cycle, with a significant decrease from 33.79 days on December 31, 2024, to 23.05 days on March 31, 2024. This substantial reduction suggests that NCR Voyix Corporation may have implemented more efficient working capital management practices, leading to a shorter time to convert investments into cash.

Overall, the analysis of the cash conversion cycle indicates that NCR Voyix Corporation has experienced fluctuations in its working capital efficiency but has shown recent improvements in managing its cash conversion cycle, which could potentially lead to enhanced liquidity and financial performance in the future.