Frontier Communications Parent Inc (FYBR)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 0.55 | 1.22 | 1.13 | 1.85 | 0.37 |
| Quick ratio | 0.33 | 0.97 | 0.90 | 1.47 | 0.26 |
| Cash ratio | 0.33 | 0.97 | 0.90 | 1.47 | 0.26 |
Frontier Communications Parent Inc's liquidity ratios have shown significant fluctuations over the years. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, increased from a concerning 0.37 in 2020 to a healthier 1.85 in 2021, but then deteriorated to 1.13 in 2022 and slightly improved to 1.22 in 2023 before dropping to 0.55 in 2024.
On the other hand, the quick ratio (also known as the acid-test ratio), which excludes inventory from current assets in the calculation, exhibited a similar trend. It jumped from a low 0.26 in 2020 to a robust 1.47 in 2021, then decreased to 0.90 in 2022, 0.97 in 2023, and significantly dropped to 0.33 in 2024.
Furthermore, the cash ratio, which indicates the company's ability to pay off its short-term liabilities using only its cash and cash equivalents, followed a parallel pattern to the quick ratio. It surged from 0.26 in 2020 to 1.47 in 2021, declined to 0.90 in 2022, 0.97 in 2023, and sharply decreased to 0.33 in 2024.
Overall, the company's liquidity position appears to be volatile, showing a mix of improvement and deterioration in its ability to meet short-term obligations. This suggests potential challenges in managing cash flow and current liabilities effectively, necessitating closer scrutiny and proactive measures to maintain financial stability.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Based on the provided data, Frontier Communications Parent Inc has maintained a cash conversion cycle of 0.00 days consistently from December 31, 2020, to December 31, 2024. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
A cash conversion cycle of 0.00 days indicates that the company is able to efficiently manage its working capital and convert its resources into cash quickly. This could be attributed to effective inventory management, prompt collection of receivables, and efficient payment of payables.
Maintaining a low or zero cash conversion cycle is generally a positive indicator of a company's liquidity and operational efficiency. It suggests that Frontier Communications Parent Inc is effectively managing its cash flow and working capital, which can contribute to the company's overall financial health and stability.