Verizon Communications Inc (VZ)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	4,194,000	2,065,000	2,605,000	2,921,000	22,171,000
Short-term investments	US$ in thousands	—	-261,000	-379,000	18,000	-1,246,000
Total current liabilities	US$ in thousands	64,771,000	53,223,000	50,171,000	47,160,000	39,660,000
Cash ratio		0.06	0.03	0.04	0.06	0.53

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($4,194,000K + $—K) ÷ $64,771,000K
= 0.06

The cash ratio of Verizon Communications Inc has shown a notable decline over the past five years, starting at 0.53 on December 31, 2020, and dropping to 0.06 on December 31, 2021. This decrease continued into the following years, reaching 0.04 on December 31, 2022, then further declining to 0.03 on December 31, 2023. However, there was a slight improvement as of December 31, 2024, with the cash ratio rising to 0.06 again.

A cash ratio below 1 indicates that Verizon may not have enough liquid assets to cover its short-term obligations. The downward trend suggests that the company may be experiencing challenges in managing its cash resources effectively over the years. Verizon should closely monitor its cash position and ensure it maintains sufficient liquidity to meet its financial obligations in the short term.