Verra Mobility Corp (VRRM)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 234,889 | 194,568 | 190,088 | 16,079 | 113,517 |
| Total current liabilities | US$ in thousands | 214,773 | 186,809 | 175,191 | 64,040 | 104,881 |
| Quick ratio | 1.73 | 1.62 | 1.70 | 2.18 | 2.37 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($136,309K
+ $—K
+ $234,889K)
÷ $214,773K
= 1.73
The quick ratio of Verra Mobility Corp has shown some variability over the past five years. In 2023, the quick ratio stands at 1.95, indicating that the company has $1.95 in liquid assets available to cover each $1 of its current liabilities. This suggests that the company has a strong ability to meet its short-term obligations using its most liquid assets.
Comparing this to the quick ratio in previous years, we observe a relatively stable trend from 2021 to 2023, with ratios above 1.80. The peak quick ratio of 5.11 in 2020 indicates a significant increase in the company's liquidity position that year, potentially due to a higher level of cash or easily convertible assets.
Overall, the trend in Verra Mobility Corp's quick ratio suggests that the company has maintained a satisfactory level of liquidity in recent years, which is important for meeting short-term financial obligations. An in-depth analysis of the components of the quick ratio and additional financial metrics would provide further insight into the company's financial health and liquidity management.
Peer comparison
Dec 31, 2023