Frontier Communications Parent Inc (FYBR)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 | — | — | — |
| Receivables | US$ in thousands | 446,000 | 456,000 | 458,000 | 553,000 | 700,000 |
| Total current liabilities | US$ in thousands | 2,275,000 | 2,295,000 | 1,451,000 | 7,140,000 | 2,804,000 |
| Quick ratio | 1.16 | 1.10 | 1.78 | 0.33 | 0.52 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,125,000K
+ $1,075,000K
+ $446,000K)
÷ $2,275,000K
= 1.16
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1 indicates that the company can cover its current liabilities with its quick assets.
Looking at the historical trend of Frontier Communications Parent Inc's quick ratio, we can observe the following:
- In 2023, the quick ratio was 1.16, indicating an improvement from the previous year and suggesting a healthy liquidity position to cover short-term obligations.
- In 2022, the quick ratio was 1.10, showing a slight decrease from the previous year but still above 1, indicating a relatively strong liquidity position.
- In 2021, the quick ratio was notably high at 1.78, indicating a significant improvement in the company's ability to cover short-term obligations with its quick assets.
- In 2020, the quick ratio was very low at 0.33, indicating potential liquidity issues and a limited ability to cover its short-term liabilities.
- In 2019, the quick ratio was also low at 0.52, suggesting a similar liquidity challenge as in 2020.
Overall, Frontier Communications Parent Inc's quick ratio has shown fluctuations over the years, with significant improvements seen in 2021 and 2023, while facing challenges in 2020 and 2019. It is important for the company to consistently monitor and manage its liquidity position to ensure it can meet its short-term obligations efficiently.
Peer comparison
Dec 31, 2023