VeriSign Inc (VRSN)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	240,100	373,600	223,500	401,194	508,196
Short-term investments	US$ in thousands	691,700	612,200	987,600	775,120	719,268
Total current liabilities	US$ in thousands	1,188,500	1,116,900	1,074,000	988,693	965,166
Cash ratio		0.78	0.88	1.13	1.19	1.27

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($240,100K + $691,700K) ÷ $1,188,500K
= 0.78

The cash ratio of Verisign Inc. has shown a declining trend over the past five years, decreasing from 1.31 in 2019 to 0.82 in 2023. This indicates that the company's ability to cover its short-term liabilities purely with cash and cash equivalents has weakened over time. A cash ratio below 1.0 implies that the company may not have enough liquid assets to cover its current obligations if they were all to come due immediately. It is essential for Verisign to monitor its cash position and work towards improving its liquidity to ensure financial stability and meet its short-term obligations effectively.