Verra Mobility Corp (VRRM)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	77,560	136,309	105,204	101,283	120,259
Short-term investments	US$ in thousands	—	2,322	2,057	6,742	3,474
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	199,741	214,773	186,809	175,191	64,040
Quick ratio		0.39	0.65	0.57	0.62	1.93

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($77,560K + $—K + $—K) ÷ $199,741K
= 0.39

The quick ratio of Verra Mobility Corp has shown fluctuations over the years. As of December 31, 2020, the quick ratio was strong at 1.93, indicating the company had $1.93 in liquid assets available to cover each $1 of current liabilities. However, this ratio declined significantly to 0.62 by December 31, 2021, suggesting a potential liquidity strain as liquid assets became insufficient to cover short-term obligations.

Further declines were observed in the quick ratio for the subsequent years, reaching 0.57 by December 31, 2022, and 0.39 by December 31, 2024. These lower ratios reflect a continued decrease in the company's ability to meet its short-term liabilities with available liquid assets.

Despite a slight improvement to 0.65 by December 31, 2023, the overall trend indicates a deterioration in Verra Mobility Corp's liquidity position over the years. Investors and stakeholders may need to closely monitor the company's ability to manage its short-term financial obligations and assess potential risks associated with its liquidity management.