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.
Peer comparison
Dec 31, 2023