VeriSign Inc (VRSN)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.43 | 0.47 | 0.64 | 0.81 | 0.83 | 0.86 | 0.87 | 0.92 | 0.93 | 0.96 | 1.00 | 1.16 | 1.18 | 1.21 | 1.19 | 1.22 | 1.23 | 1.23 | 1.23 | 1.24 |
| Quick ratio | 0.40 | 0.43 | 0.59 | 0.77 | 0.79 | 0.81 | 0.83 | 0.87 | 0.89 | 0.91 | 0.95 | 1.12 | 1.13 | 1.16 | 1.14 | 1.18 | 1.19 | 1.19 | 1.19 | 1.21 |
| 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 |
VeriSign Inc's liquidity ratios have shown a decreasing trend over the years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, decreased from 1.24 as of March 31, 2020, to 0.43 as of December 31, 2024. This indicates a potential weakening of VeriSign's liquidity position.
Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also experienced a decline from 1.21 on March 31, 2020, to 0.40 on December 31, 2024. This suggests that the company may face difficulties in meeting its short-term obligations without relying on inventory.
Furthermore, the cash ratio, which assesses the ability to pay off current liabilities using only cash and cash equivalents, decreased from 1.20 on March 31, 2020, to 0.40 on December 31, 2024. VeriSign's decreasing cash ratio implies a reduced capacity to settle its short-term debt obligations with readily available cash resources.
Overall, the declining trend in VeriSign Inc's liquidity ratios raises concerns about its short-term financial stability and ability to meet its obligations promptly. Investors and stakeholders may need to closely monitor the company's liquidity management strategies and financial performance to address potential liquidity risks.
Additional liquidity measure
| 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 conversion cycle | days | -18.90 | -14.59 | -16.13 | -15.89 | -21.58 | -16.08 | -12.10 | -12.05 | -16.23 | 89.36 | -13.65 | 81.86 | -15.66 | 98.30 | 87.08 | 72.70 | -23.66 | 70.83 | 66.57 | 59.03 |
VeriSign Inc's cash conversion cycle, a metric that evaluates how efficiently a company manages its working capital, has displayed varying trends over the reported periods.
Initially, the cash conversion cycle was around 59 to 70 days, indicating that VeriSign took approximately 2 to 3 months to convert its investments in raw materials into cash from sales. However, by the end of December 2020 and throughout 2021, this cycle turned negative in some periods, suggesting an improvement in the efficiency of VeriSign's operations.
Subsequently, for the periods ending June 2022 to September 2024, the cash conversion cycle remained negative, indicating a shortened time between investing in inventory and receiving cash from sales. This may imply a more streamlined process, potentially resulting in improved liquidity and cash flow management for VeriSign Inc.