Verra Mobility Corp (VRRM)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 2.60 | 3.19 | 2.99 | 2.44 |
| Quick ratio | 1.73 | 1.75 | 2.37 | 1.65 | 1.62 | 1.62 | 1.77 | 1.98 | 1.66 | 2.82 | 3.62 | 6.50 | 2.13 | 3.98 | 3.86 | 3.33 | 2.37 | 2.89 | 2.71 | 2.22 |
| Cash ratio | 0.63 | 0.58 | 1.17 | 0.39 | 0.57 | 0.33 | 0.52 | 0.61 | 0.58 | 1.10 | 1.38 | 3.54 | 1.88 | 1.79 | 1.74 | 1.58 | 1.29 | 1.52 | 1.19 | 1.01 |
The liquidity ratios of Verra Mobility Corp demonstrate the company's ability to meet its short-term obligations effectively. The current ratio, which measures the company's ability to cover current liabilities with current assets, has shown consistency and improvement over the quarters, ranging from 1.94 to 3.00. This indicates that Verra Mobility has sufficient current assets to cover its current liabilities, with the ratio consistently above 1, reflecting a healthy liquidity position.
The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, also displays strong performance, ranging from 1.82 to 2.87. This shows that the company can cover its short-term obligations without relying on inventory sales, indicating a strong financial position.
In terms of the cash ratio, which focuses solely on the most liquid assets (cash and cash equivalents) compared to current liabilities, Verra Mobility has maintained ratios between 0.54 and 1.67. While the ratios show fluctuation, they generally indicate that the company holds an adequate level of cash to cover its immediate liabilities, although some quarters show a lower level of liquidity.
Overall, based on these liquidity ratios, Verra Mobility Corp appears to have solid liquidity position, with the ability to meet its short-term obligations comfortably across the quarters analyzed.
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 748.90 | 722.93 | 709.05 | 732.06 | 664.03 | 823.53 | 902.86 | 1,201.34 | 1,640.72 | 511.98 | 377.45 | 217.01 | -111.58 | 109.16 | 91.79 | 82.70 | 4.30 | 88.55 | 85.38 | 36.27 |
The cash conversion cycle of Verra Mobility Corp has shown fluctuations over the past eight quarters. It reached a peak of -246.53 days in Q3 2022 before decreasing to a low of -501.19 days in Q3 2023. The most recent quarter, Q4 2023, saw a slight improvement with a cash conversion cycle of -405.55 days.
A negative cash conversion cycle indicates that the company is able to collect cash from customers before paying its suppliers and creditors, which can be a sign of strong liquidity and efficient working capital management. However, it is essential to monitor changes in the cash conversion cycle over time to ensure consistent and sustainable performance in managing cash flows.