Verra Mobility Corp (VRRM)

Cash ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cash and cash equivalents	US$ in thousands	77,560	206,088	125,398	153,228	139,722	114,379	210,083	64,267	105,204	51,576	86,392	93,377	101,283	128,247	147,346	249,605	120,259	129,158	113,239	113,583
Short-term investments	US$ in thousands	—	—	2,365	2,405	2,322	1,778	1,604	1,665	2,057	1,811	6,380	6,878	—	6,268	3,256	3,168	3,474	3,627	3,345	3,510
Total current liabilities	US$ in thousands	199,741	202,493	175,299	159,445	214,773	197,567	180,809	168,637	186,809	161,087	165,505	154,145	175,191	116,930	106,743	70,430	64,040	72,014	65,020	72,003
Cash ratio		0.39	1.02	0.73	0.98	0.66	0.59	1.17	0.39	0.57	0.33	0.56	0.65	0.58	1.15	1.41	3.59	1.93	1.84	1.79	1.63

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, which measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, has displayed some fluctuations over the reported periods.

From March 31, 2020, to March 31, 2021, the cash ratio consistently increased, indicating an improvement in the company's liquidity position. However, in the following quarters, the ratio declined significantly, suggesting a potential strain on short-term cash availability relative to current liabilities.

Notably, there was a notable dip in the cash ratio from June 30, 2021, to September 30, 2021, which may raise concerns about the company's ability to meet its immediate obligations with its available cash resources during that period.

It is also observed that the cash ratio experienced fluctuations throughout 2022 and 2023, with varying levels of liquidity on hand relative to short-term liabilities. The ratio hit its lowest point at 0.33 on September 30, 2022, which could indicate a potential liquidity crunch during that quarter.

In the most recent periods of December 31, 2023, to December 31, 2024, there were mixed results in the cash ratio, showcasing some volatility in the company's ability to cover its short-term liabilities with cash. The ratio fluctuated between 0.39 and 1.02 during this timeframe, indicating variability in Verra Mobility Corp's liquidity position.

Overall, consistent monitoring of the cash ratio is crucial for evaluating the company's short-term liquidity health and its ability to meet immediate financial obligations. The fluctuations observed in Verra Mobility Corp's cash ratio highlight the importance of managing cash resources efficiently to maintain a healthy liquidity position.