VeriSign Inc (VRSN)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 5,600 | 6,300 | 6,200 | 5,284 | 4,642 |
| Total current liabilities | US$ in thousands | 1,531,100 | 1,188,500 | 1,116,900 | 1,074,000 | 988,693 |
| Quick ratio | 0.40 | 0.79 | 0.89 | 1.13 | 1.19 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($206,700K
+ $398,600K
+ $5,600K)
÷ $1,531,100K
= 0.40
The quick ratio of VeriSign Inc has been showing a decreasing trend over the past five years, declining from 1.19 in December 31, 2020, to 0.40 in December 31, 2024.
A quick ratio below 1 indicates that the company may have difficulties meeting its short-term obligations with its most liquid assets. The decreasing trend might suggest a deterioration in the company's liquidity position over time.
A quick ratio of 0.40 as of December 31, 2024, indicates that VeriSign Inc may face challenges in covering its short-term liabilities using its quick assets alone. This could raise concerns about the company's ability to manage its short-term financial obligations efficiently.
It would be advisable for stakeholders and investors to monitor the company's liquidity position closely and assess the effectiveness of its strategies to improve liquidity in the future.
Peer comparison
Dec 31, 2024