Verra Mobility Corp (VRRM)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 77,560 136,309 105,204 101,283 120,259
Short-term investments US$ in thousands — 2,322 2,057 6,742 3,474
Total current liabilities US$ in thousands 199,741 214,773 186,809 175,191 64,040
Cash ratio 0.39 0.65 0.57 0.62 1.93

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($77,560K + $—K) ÷ $199,741K
= 0.39

The cash ratio of Verra Mobility Corp has shown some fluctuations over the years according to the provided data. Starting at 1.93 on December 31, 2020, the cash ratio declined to 0.62 by December 31, 2021, indicating a decrease in the company's ability to cover its short-term liabilities solely with cash and cash equivalents.

Subsequently, the cash ratio continued to decrease to 0.57 on December 31, 2022, and then slightly improved to 0.65 by December 31, 2023. However, by the end of December 31, 2024, the cash ratio fell to 0.39, suggesting a further decline in the company's liquidity position.

Overall, the decreasing trend in Verra Mobility Corp's cash ratio over the years may signal potential liquidity challenges or inefficiencies in managing its cash resources. It is essential for the company to closely monitor and optimize its cash management strategies to ensure its ability to meet short-term obligations effectively.