Verra Mobility Corp (VRRM)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	136,309	105,204	101,283	120,259	131,513
Short-term investments	US$ in thousands	—	2,057	6,742	3,474	3,642
Total current liabilities	US$ in thousands	214,773	186,809	175,191	64,040	104,881
Cash ratio		0.63	0.57	0.62	1.93	1.29

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($136,309K + $—K) ÷ $214,773K
= 0.63

The cash ratio of Verra Mobility Corp has displayed fluctuations over the past five years, ranging from a low of 0.78 in 2022 to a high of 2.26 in 2020. The cash 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 using cash on hand.

In 2023, the cash ratio of 0.85 suggests that for every dollar of current liabilities, the company has $0.85 in cash and cash equivalents available to cover those obligations. This implies a relatively moderate liquidity position, which may warrant further monitoring to ensure the company can meet its short-term financial obligations promptly.

Overall, the trend in Verra Mobility Corp's cash ratio indicates variability in its liquidity position over the years, highlighting the importance of maintaining a balance between cash reserves and investments to manage short-term obligations effectively.