VeriSign Inc (VRSN)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 206,700 | 240,100 | 373,600 | 223,500 | 401,194 |
| Short-term investments | US$ in thousands | 398,600 | 691,700 | 612,200 | 987,600 | 775,120 |
| Total current liabilities | US$ in thousands | 1,531,100 | 1,188,500 | 1,116,900 | 1,074,000 | 988,693 |
| Cash ratio | 0.40 | 0.78 | 0.88 | 1.13 | 1.19 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($206,700K
+ $398,600K)
÷ $1,531,100K
= 0.40
The cash ratio of VeriSign Inc, a measure of its ability to cover short-term liabilities with cash and cash equivalents, has shown a declining trend from 1.19 in December 2020 to 0.40 in December 2024. A cash ratio above 1 indicates that the company has enough cash to cover its short-term liabilities, while a ratio below 1 suggests a potential liquidity risk. VeriSign's decreasing cash ratio over the years may raise concerns about its ability to meet its immediate obligations solely through its available cash resources. It is advisable for the company to closely monitor its liquidity position and take necessary steps to improve its cash reserves relative to its short-term liabilities.
Peer comparison
Dec 31, 2024