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.