Verra Mobility Corp (VRRM)

Liquidity ratios

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
Current ratio 1.97 2.61 2.54 2.72 2.05 2.08 3.00 1.97 1.94 1.97 2.10 2.35 1.99 3.18 3.95 6.86 5.12 4.33 4.16 3.69
Quick 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
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

The current ratio of Verra Mobility Corp has shown fluctuations over the period under review, ranging from a high of 6.86 on March 31, 2021, to a low of 1.94 on December 31, 2022. This ratio indicates the company's ability to cover its short-term obligations with its current assets, with a higher ratio generally considered more favorable.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventories from current assets, shows variability in Verra Mobility Corp's ability to meet short-term obligations without relying on selling inventory. The ratio ranged from a high of 3.59 on March 31, 2021, to a low of 0.33 on September 30, 2022.

The cash ratio, which is the most conservative measure of liquidity as it considers only cash and cash equivalents to cover short-term liabilities, also shows fluctuations for Verra Mobility Corp. The ratio ranged from a high of 3.59 on March 31, 2021, to a low of 0.33 on September 30, 2022.

Overall, analyzing these liquidity ratios indicates that Verra Mobility Corp has experienced some variability in its ability to meet short-term obligations with its current assets over the period, with some quarters showing stronger liquidity positions than others. It is essential for the company to maintain a healthy liquidity position to ensure it can meet its financial obligations in a timely manner.

Additional liquidity measure

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 conversion cycle days 65.43 57.10 49.64 65.39 106.25 173.67 159.25 146.64 149.11 122.88 124.35 128.14 125.59 515.83 562.26 352.48 6.89 265.02 210.94 338.02

The cash conversion cycle of Verra Mobility Corp has fluctuated significantly over the periods provided in the data.

Initially, the company had a high cash conversion cycle of around 338 days in March 2020, indicating a lengthy time required to convert its investments in inventory and other resources into cash. This was reduced to 6.89 days by December 2020, signifying a significant improvement in the efficiency of its operations.

However, the cycle increased again to over 500 days in the following quarters of 2021, signaling potential inefficiencies in managing working capital and converting sales into cash. This trend continued until December 2021, where the cycle improved to 125.59 days.

Subsequently, Verra Mobility Corp managed to further reduce its cash conversion cycle to around 65 days by June 2024, indicating enhanced efficiency in managing its cash flows and working capital.

Overall, the fluctuation in the cash conversion cycle of Verra Mobility Corp reflects varying levels of operational efficiency and effectiveness in managing its cash flow and working capital over the periods analyzed.