VeriSign Inc (VRSN)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	240,100	373,600	223,500	401,194	508,196
Short-term investments	US$ in thousands	691,700	612,200	987,600	775,120	719,268
Receivables	US$ in thousands	6,300	6,200	5,284	4,642	16,245
Total current liabilities	US$ in thousands	1,188,500	1,116,900	1,074,000	988,693	965,166
Quick ratio		0.79	0.89	1.13	1.19	1.29

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($240,100K + $691,700K + $6,300K) ÷ $1,188,500K
= 0.79

Verisign Inc.'s quick ratio has shown a declining trend from 2019 to 2023. The quick ratio in 2019 stood at 1.32, indicating a strong ability to cover its short-term obligations with its most liquid assets. However, this ratio has gradually decreased over the years, reaching 0.83 by the end of 2023.

A quick ratio below 1.0 suggests that the company may have difficulty meeting its short-term liabilities with its readily liquid assets. Verisign Inc.'s decreasing quick ratio could potentially signal liquidity challenges, as it now has less immediate resources available to cover its short-term debts as compared to previous years.

It is important for stakeholders to closely monitor this trend and the company's overall liquidity position to ensure that Verisign Inc. can meet its financial obligations in the short term.