Verra Mobility Corp (VRRM)

Quick ratio

		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	US$ in thousands	136,309	114,379	210,083	64,267	105,204	51,576	86,392	93,377	101,283	128,247	147,346	249,605	120,259	129,158	113,239	113,583	131,513	135,564	92,247	91,484
Short-term investments	US$ in thousands	—	—	1,604	1,665	2,057	1,811	—	—	—	—	—	—	—	—	—	—	3,642	1,699	1,331	873
Receivables	US$ in thousands	234,889	231,822	216,787	212,435	194,568	207,937	206,646	211,390	190,088	201,885	238,796	207,866	16,079	157,164	137,784	126,197	113,517	123,755	119,832	111,383
Total current liabilities	US$ in thousands	214,773	197,567	180,809	168,637	186,809	161,087	165,505	154,145	175,191	116,930	106,743	70,430	64,040	72,014	65,020	72,003	104,881	90,318	78,717	91,791
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

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 measures a company's ability to meet its short-term financial obligations with its most liquid assets. A higher quick ratio indicates a stronger ability to cover current liabilities.

Looking at Verra Mobility Corp's quick ratio over the past eight quarters, we observe fluctuations in the ratio. In Q2 2023, the quick ratio peaked at 2.87, indicating a significant increase in the company's liquidity and its ability to meet short-term obligations. Conversely, in Q1 2023, the quick ratio dropped to 1.84, suggesting a slight decrease in liquidity compared to the previous quarter.

Overall, the quick ratio for Verra Mobility Corp has been relatively strong, consistently above 1, which generally indicates the company has more than enough liquid assets to cover its short-term liabilities. However, investors may want to monitor any significant deviations in the quick ratio trend to assess changes in the company's liquidity position.