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.