VeriSign Inc (VRSN)

Cash 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 and cash equivalents	US$ in thousands	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	508,196	109,288	751,580	779,625
Short-term investments	US$ in thousands	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	719,268	1,130,110	482,736	482,720
Total current liabilities	US$ in thousands	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	965,166	960,878	934,681	941,280
Cash ratio		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	1.27	1.29	1.32	1.34

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

Verisign Inc.'s cash ratio has shown a gradually decreasing trend over the past eight quarters, indicating a potential decline in the company's ability to cover its short-term liabilities with its available cash. The ratio has decreased from 1.16 in Q1 2022 to 0.82 in Q4 2023, suggesting that the company may have been utilizing its cash reserves for other purposes, such as investment or operational expenses.

While a cash ratio above 1.0 is generally considered ideal as it would indicate that the company can cover all its short-term liabilities with cash alone, Verisign's decreasing trend may raise concerns about its liquidity position. Investors and creditors may scrutinize the company's cash management practices and future cash flow projections to assess its ability to meet financial obligations in the short term.