VeriSign Inc (VRSN)

Cash ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash and cash equivalents	US$ in thousands	206,700	267,300	252,200	731,800	240,100	157,700	343,900	819,800	373,600	560,600	606,300	758,500	223,500	256,869	216,497	246,811	401,194	145,701	306,701	498,693
Short-term investments	US$ in thousands	398,600	383,000	443,000	198,300	691,700	791,100	597,000	200,500	612,200	424,900	395,900	456,500	987,600	947,182	915,423	943,772	775,120	1,014,070	897,281	649,348
Total current liabilities	US$ in thousands	1,531,100	1,526,200	1,191,300	1,213,900	1,188,500	1,173,600	1,141,700	1,171,400	1,116,900	1,095,100	1,067,200	1,088,500	1,074,000	1,048,180	998,334	1,010,220	988,693	978,008	1,018,330	955,672
Cash ratio		0.40	0.43	0.58	0.77	0.78	0.81	0.82	0.87	0.88	0.90	0.94	1.12	1.13	1.15	1.13	1.18	1.19	1.19	1.18	1.20

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

VeriSign Inc's cash ratio, which measures the company's ability to cover its short-term liabilities with cash and cash equivalents, has shown a declining trend over the past few years. Starting at 1.20 in March 2020, the cash ratio has steadily decreased to 0.40 by December 2024.

A cash ratio above 1.0 indicates that a company has enough cash to cover its short-term obligations. VeriSign Inc maintained a healthy cash ratio above 1.0 until the second quarter of 2022, when it started to decline below this threshold.

The decreasing trend in the cash ratio may signal potential liquidity challenges for the company, as it indicates a decreasing ability to cover short-term liabilities solely with cash on hand. VeriSign Inc may need to monitor its cash management closely and consider strategies to improve its liquidity position to ensure financial stability and meet its obligations as they come due.