Frontier Communications Parent Inc (FYBR)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 750,000 1,125,000 322,000 2,127,000 1,829,000
Short-term investments US$ in thousands 0 1,075,000 1,750,000 0
Total current liabilities US$ in thousands 2,289,000 2,275,000 2,295,000 1,451,000 7,140,000
Cash ratio 0.33 0.97 0.90 1.47 0.26

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($750,000K + $0K) ÷ $2,289,000K
= 0.33

The cash ratio of Frontier Communications Parent Inc has shown significant variability over the past five years. In December 2020, the cash ratio was low at 0.26, indicating that the company had limited cash reserves relative to its current liabilities. However, in December 2021, the cash ratio increased substantially to 1.47, demonstrating a strong improvement in the company's liquidity position.

Subsequently, the cash ratio for December 2022, December 2023, and December 2024 stood at 0.90, 0.97, and 0.33 respectively. These figures reflect fluctuations in Frontier Communications Parent Inc's ability to cover its current liabilities with its available cash assets. While the cash ratio improved in 2021, it declined in the following years, indicating potential challenges in managing liquidity effectively.

Overall, the company's cash ratio has been volatile, and it is crucial for Frontier Communications Parent Inc to monitor and manage its cash position closely to ensure it maintains sufficient liquidity to meet its short-term obligations.