Frontier Communications Parent Inc (FYBR)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	1,125,000	322,000	2,127,000	1,829,000	760,000
Short-term investments	US$ in thousands	1,075,000	1,750,000	—	—	—
Total current liabilities	US$ in thousands	2,275,000	2,295,000	1,451,000	7,140,000	2,804,000
Cash ratio		0.97	0.90	1.47	0.26	0.27

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,125,000K + $1,075,000K) ÷ $2,275,000K
= 0.97

The cash ratio for Frontier Communications Parent Inc has fluctuated over the past five years, ranging from a low of 0.26 in 2020 to a high of 1.47 in 2021. The ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on other sources of funding.

In 2023, the cash ratio improved to 0.97 from 0.90 in 2022, suggesting that Frontier Communications Parent Inc had a higher level of cash and cash equivalents relative to its current liabilities. This indicates an enhanced ability to address short-term financial obligations using readily available cash resources.

Overall, while the company's cash ratio has shown variability in recent years, the upward trend from 2020 to 2021 and the improvement in 2023 indicate a positive trend in the company's liquidity position and ability to meet its short-term financial obligations with cash on hand. It is essential for Frontier Communications Parent Inc to monitor its cash position closely to ensure it has sufficient liquidity to sustain its operations and manage short-term liabilities effectively.