The company's financial position appears increasingly vulnerable, evidenced by a debt-to-equity ratio that surged to 18.46 in 2026Q1 alongside a compressed current ratio of 0.67.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Total Current Assets | 1.39B | 1.39B | 1.38B | 1.25B | 1.07B | 984.65M | 725.46M | 639.8M | 471.87M | 576.02M | 581.11M | 419.31M | 250.38M | 307.05M | 141.39M | 81.2M |
| Cash & Short-Term Investments | 758.53M | 774M | 945.18M | 776.48M | 711.85M | 745.41M | 507.82M | 428.4M | 301.5M | 379.24M | 367.54M | 298.63M | 153.74M | 188.99M | 64.22M | 31.75M |
| Cash Only | 738.53M | 754M | 899.45M | 761.22M | 711.85M | 745.41M | 507.81M | 421.35M | 298.32M | 353.91M | 341.3M | 298.63M | 153.74M | 188.14M | 64.04M | 31.68M |
| Short-Term Investments | 20M | 20M | 45.74M | 15.27M | 0 | 0 | 10.35K | 7.05M | 3.18M | 25.33M | 26.23M | 0 | 0 | 844.38K | 183.84K | 67.01K |
| Accounts Receivable | 250M | 262M | 138.81M | 250.6M | 243.65M | 112.75M | 101.63M | 122.52M | 74.63M | 73.79M | 46.47M | 25.19M | 30.45M | 46.21M | 30.17M | 17.16M |
| Days Sales Outstanding | 27.68 | 31.48 | 16.13 | 28.07 | 31.23 | 18.7 | 686.2 | 471.49 | 379.29 | 423.88 | 310.68 | 151.68 | 160.67 | 217.08 | 164.46 | 134.18 |
| Inventory | 17M | 17M | 16.63M | 16.12M | 22.2M | 23.07M | 14.02M | 15.94M | 15.13M | 15.01M | 11.77M | 9.44M | 9.48M | 8.75M | 7.57M | 5.75M |
| Days Inventory Outstanding | 2.02 | 2.17 | 2.31 | 2.14 | 3.12 | 5.1 | 92.43 | 75.7 | 84.53 | 102.2 | 97.55 | 73.31 | 55.88 | 45.86 | 46.86 | 48.56 |
| Other Current Assets | 83.47M | 278M | 14.78M | 17.3M | 74.19M | 88.73M | 10K | 11.86M | 3.18M | 25.33M | 147.07K | 176.44K | 206.83K | 233.89K | 738.94K | 489.57K |
| Total Non-Current Assets | 4.26B | 4.24B | 4.32B | 3.9B | 3.4B | 3.02B | 2.7B | 2.7B | 663.85M | 578.07M | 494.48M | 464.37M | 421.96M | 335.99M | 302.75M | 282.36M |
| Property, Plant & Equipment | 3.5B | 3.48B | 3.54B | 3.14B | 2.66B | 2.39B | 2.09B | 2.2B | 294.21M | 222.8M | 121.87M | 147.64M | 150.92M | 102.94M | 93.11M | 108.98M |
| Fixed Asset Turnover | 0.90x | 0.87x | 0.89x | 1.04x | 1.07x | 0.92x | 0.03x | 0.04x | 0.24x | 0.29x | 0.45x | 0.41x | 0.46x | 0.75x | 0.72x | 0.43x |
| Goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 39M | 38M | 25.96M | 16.22M | 12.72M | 12.71M | 9.63M | 8.84M | 9.11M | 9.7M | 5.5M | 5.48M | 4.93M | 6.06M | 4.69M | 4.18M |
| Long-Term Investments | 28K | 0 | 0 | 1.68M | 1.58M | 1.41M | 16.39K | 142.3K | 0 | 0 | 15.65M | 3.97M | 370.21K | 199.81M | 174.85M | 143.8M |
| Other Non-Current Assets | 335M | 726M | 469.85M | 503.08M | 519.55M | 481.22M | 445.77M | 419.83M | 330.34M | 316.94M | 324.47M | 275.74M | 243.5M | 3.76M | 5.17M | 3.7M |
| Total Assets | 5.65B | 5.64B | 5.7B | 5.15B | 4.47B | 4.01B | 3.43B | 3.34B | 1.14B | 1.15B | 1.08B | 883.68M | 672.34M | 643.11M | 444.14M | 363.57M |
| Asset Turnover | 0.55x | 0.54x | 0.55x | 0.63x | 0.64x | 0.55x | 0.02x | 0.03x | 0.06x | 0.06x | 0.05x | 0.07x | 0.10x | 0.12x | 0.15x | 0.13x |
| Asset Growth % | 5.62% | -1.17% | 10.84% | 15.18% | 11.48% | 16.88% | 2.63% | 194.18% | -1.59% | 7.3% | 21.72% | 31.43% | 4.55% | 44.8% | 22.16% | - |
| Total Current Liabilities | 2.09B | 1.92B | 1.77B | 1.62B | 1.42B | 1.26B | 1.07B | 916.06M | 470.32M | 477.18M | 404.98M | 411.29M | 323.67M | 297.22M | 289.93M | 228.33M |
| Accounts Payable | 166M | 192M | 161.24M | 233.86M | 209.47M | 119.4M | 112.28M | 84.33M | 55.23M | 54.86M | 41.6M | 45.23M | 34.32M | 40.96M | 40.53M | 38.46M |
| Days Payables Outstanding | 24.79 | 24.47 | 22.41 | 31 | 29.39 | 26.39 | 740.16 | 400.45 | 308.67 | 373.45 | 344.71 | 351.15 | 202.27 | 214.63 | 250.96 | 324.96 |
| Short-Term Debt | 265M | 262M | 283.62M | 220.29M | 447.77M | 483.53M | 78.14M | 110.14M | 61.68M | 122.38M | 50.74M | 79.4M | 55.55M | 20.57M | 41.08M | 49.34M |
| Deferred Revenue (Current) | 1.22B | 0 | 363.63M | 347.11M | 351.49M | 309.43M | 294.08M | 196.18M | 124.08M | 113.95M | 105.53M | 113.33M | 96.45M | 106.93M | 98.05M | 59.29M |
| Other Current Liabilities | 80M | 785M | 62.8M | 2.3M | 386.19M | 321.08M | 26.42M | 22.85M | 263.84M | 11.82M | 35.07M | 18.3M | 17.36M | 4.43M | 3.57M | 3.73M |
| Current Ratio | 0.67x | 0.73x | 0.78x | 0.77x | 0.75x | 0.78x | 0.68x | 0.70x | 1.00x | 1.21x | 1.43x | 1.02x | 0.77x | 1.03x | 0.49x | 0.36x |
| Quick Ratio | 0.66x | 0.72x | 0.77x | 0.76x | 0.74x | 0.76x | 0.66x | 0.68x | 0.97x | 1.18x | 1.41x | 1.00x | 0.74x | 1.00x | 0.46x | 0.33x |
| Cash Conversion Cycle | 4.92 | 9.18 | -3.97 | -0.79 | 4.96 | -2.59 | 38.47 | 146.74 | 155.15 | 152.63 | 63.52 | -126.16 | 14.27 | 48.32 | -39.65 | -142.22 |
| Total Non-Current Liabilities | 3.36B | 3.46B | 3.57B | 3.28B | 2.81B | 2.43B | 2.22B | 2.14B | 198.19M | 159.43M | 149.62M | 77.2M | 45.27M | 41.76M | 70.5M | 73.48M |
| Long-Term Debt | 394M | 441M | 526.36M | 432.78M | 160.89M | 108.66M | 190.28M | 152.59M | 117.59M | 54.95M | 45.52M | 12.73M | 28.83M | 22.57M | 49.27M | 52.11M |
| Capital Lease Obligations | 10.72B | 2.74B | 2.67B | 2.52B | 2.37B | 2.14B | 1.89B | 1.89B | 0 | 1.5B | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Tax Liabilities | 42M | 0 | 17.93M | 15.71M | 10.46M | 11.26M | 10.04M | 8.24M | 56.01M | 82.3M | 88.66M | 51.27M | 1.82M | 1.69M | 834.44K | 0 |
| Other Non-Current Liabilities | 281M | 272M | 353.97M | 314.56M | 268.72M | 173.37M | 139.61M | 84.41M | 6.98M | 1.51B | 6.59M | 9.77M | 12.66M | 6.52M | 20.07M | 21.37M |
| Total Liabilities | 5.45B | 5.37B | 5.34B | 4.9B | 4.23B | 3.69B | 3.29B | 3.05B | 668.51M | 636.61M | 554.6M | 488.49M | 368.94M | 338.98M | 360.43M | 301.81M |
| Total Debt | 3.82B | 3.86B | 3.87B | 3.54B | 2.98B | 2.73B | 2.49B | 2.25B | 185.52M | 177.33M | 96.94M | 91.7M | 84.39M | 43.14M | 90.36M | 101.45M |
| Net Debt | 3.08B | 3.1B | 2.97B | 2.78B | 2.27B | 1.99B | 1.98B | 1.83B | -112.79M | -176.59M | -244.36M | -206.93M | -69.35M | -145M | 26.32M | 69.77M |
| Debt / Equity | 18.46x | 14.66x | 10.61x | 14.61x | 12.70x | 8.68x | 17.71x | 7.82x | 0.40x | 0.34x | 0.19x | 0.23x | 0.28x | 0.14x | 1.08x | 1.64x |
| Debt / EBITDA | 6.24x | 5.10x | 3.98x | 5.01x | 6.74x | 3.78x | 341.27x | 84.68x | 13.89x | 13.23x | 12.88x | 9.27x | 31.33x | 11.66x | 26.76x | - |
| Net Debt / EBITDA | 5.03x | 4.11x | 3.06x | 3.94x | 5.13x | 2.75x | 271.62x | 68.82x | -8.44x | -13.17x | -32.47x | -20.92x | -25.75x | -39.21x | 7.80x | - |
| Interest Coverage | 0.57x | 0.62x | 1.61x | 1.03x | 0.31x | 1.97x | -0.06x | 0.14x | 0.02x | 1.14x | 6.81x | 9.34x | 1.50x | 0.21x | 0.23x | -0.33x |
| Total Equity | 207M | 263M | 364.81M | 242.59M | 234.74M | 314.95M | 140.54M | 287.74M | 467.22M | 517.47M | 520.99M | 395.19M | 303.4M | 304.13M | 83.71M | 61.75M |
| Equity Growth % | -91.5% | -27.91% | 50.38% | 3.35% | -25.47% | 124.1% | -51.16% | -38.41% | -9.71% | -0.68% | 31.83% | 30.25% | -0.24% | 263.3% | 35.56% | - |
| Book Value per Share | 1.80 | 22.89 | 3.17 | 2.08 | 2.01 | 2.70 | 1.38 | 2.84 | 4.62 | 5.11 | 5.15 | 3.91 | 3.00 | 3.51 | 1.04 | 0.77 |
| Total Shareholders' Equity | 207M | 263M | 364.81M | 242.59M | 234.74M | 314.95M | 140.54M | 287.74M | 467.22M | 517.47M | 520.99M | 395.19M | 303.4M | 304.13M | 81.97M | 53.91M |
| Common Stock | 248M | 248M | 248.28M | 248.28M | 248.28M | 167.43M | 248.28M | 157.01M | 151.3M | 151.4M | 143.52M | 172.18M | 201.84M | 228.29M | 185.09M | 141.23M |
| Retained Earnings | -197M | -109M | -21.71M | -148.08M | -155.9M | -84.77M | -164.77M | 18.92M | 216.8M | 258.66M | 286.1M | 139.44M | -1.19M | -50.74M | -72.42M | -82.23M |
| Treasury Stock | -13M | -13M | -12.79M | -11.55M | -12.87M | -10.23M | -9.41M | -8.96M | -6.24M | -4.33M | -4.02M | -5.29M | -7.79M | -8.27M | -10.42M | 0 |
| Accumulated OCI | -115M | -146M | -132.33M | -128.09M | -127.95M | 15.09M | -218.19M | 21.51M | 11.08M | 19.86M | 8.48M | -14.85M | -10.74M | -2.15M | -5.43M | -5.09M |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.75M | 7.84M |
High leverage and liquidity
As reported in recent financial statements, VLRS has seen its equity base contract to $207.0 million in 2026Q1, reflecting a deteriorating trajectory where persistent losses and rising debt obligations have significantly weakened the company's overall financial position relative to its historical performance over the last ten quarters.
The consistent decline in retained earnings, which reached negative $197.0 million in 2026Q1, suggests that the company is struggling to generate the internal capital necessary to support its asset-heavy business model. This trend warrants close monitoring, as the erosion of equity buffers leaves the firm increasingly exposed to operational shocks and market volatility.
Based on the company's quarterly filings, the debt-to-equity ratio has surged to 18.46 in 2026Q1, indicating that the firm's reliance on external financing has reached a critical level that may limit its ability to navigate future capital requirements or unexpected industry-wide downturns.
The high leverage ratio appears to be a structural necessity driven by the capital-intensive nature of the airline industry and the need to finance a modern fleet. However, the current level of debt relative to equity suggests that the company's financial flexibility is severely constrained, potentially increasing the cost of future capital raises.
According to the provided balance sheet data, the current ratio has compressed to 0.67 in 2026Q1, signaling that the company's ability to cover its short-term obligations with existing liquid assets is increasingly strained compared to the more stable liquidity profiles observed in previous fiscal periods.
A current ratio consistently below 1.0 suggests that the company relies heavily on ongoing operational cash flow to meet its immediate liabilities. Investors should monitor this closely, as any disruption in revenue or unexpected maintenance-related cash outflows could quickly exacerbate the firm's liquidity challenges.
As indicated by the company's reported figures, the reliance on operating leases creates a significant off-balance-sheet burden that is not fully captured by traditional debt metrics, potentially masking the true extent of the company's long-term financial commitments and operational risk profile.
While the headline debt-to-equity ratio is already elevated, the inclusion of capitalized lease obligations would likely reveal an even more leveraged capital structure. This suggests that the company's financial health is more precarious than standard balance sheet analysis might imply, necessitating a more cautious assessment of its long-term solvency.
Quick answers to the most common questions about buying VLRS stock.
As of 2025, Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) had total assets of $5.64B including $1.39B in current assets.
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) carries total debt of $3.86B, offset by $774.0M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) has total shareholders' equity (book value) of $263.0M ($22.89 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) reported a current ratio of 0.73x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.