VeriSign Inc (VRSN)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	988,300	1,038,700	1,268,700	1,217,940	1,278,590
Total current liabilities	US$ in thousands	1,188,500	1,116,900	1,074,000	988,693	965,166
Current ratio		0.83	0.93	1.18	1.23	1.32

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $988,300K ÷ $1,188,500K
= 0.83

Verisign Inc.'s current ratio has displayed a declining trend over the past five years. As of December 31, 2023, the current ratio stands at 0.83, which indicates that the company has $0.83 in current assets for every $1 of current liabilities. This current ratio has decreased from 0.93 in the previous year and continues a downward trend observed since 2019, where the current ratio was at its peak of 1.32.

A current ratio below 1 suggests that the company may have difficulty meeting its short-term obligations using its current assets alone. Verisign Inc.'s current ratio below 1 for the most recent year indicates a potential liquidity issue that may need to be addressed through improved management of current assets and liabilities.

It is essential for Verisign Inc. to closely monitor its liquidity position and take necessary steps to improve its ability to meet short-term obligations promptly and efficiently. Further analysis of the components of current assets and liabilities can provide more insights into the factors contributing to the decline in the current ratio and help in formulating strategies to enhance liquidity management moving forward.