Verizon Communications Inc (VZ)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,065,000 | 2,605,000 | 2,921,000 | 22,171,000 | 2,594,000 |
| Short-term investments | US$ in thousands | — | 37,000 | 18,000 | 589,000 | — |
| Total current liabilities | US$ in thousands | 53,223,000 | 50,171,000 | 47,160,000 | 39,660,000 | 44,868,000 |
| Cash ratio | 0.04 | 0.05 | 0.06 | 0.57 | 0.06 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,065,000K
+ $—K)
÷ $53,223,000K
= 0.04
Verizon Communications Inc's cash ratio has decreased over the past five years. The cash ratio was 0.16 as of December 31, 2023, down from 0.19 in the previous year and 0.21 in 2019. This declining trend suggests that the company may have reduced liquidity in relation to its current liabilities. The sharp drop in the cash ratio from 0.70 in 2020 to 0.16 in 2023 is particularly notable and warrants further investigation into the company's cash management practices and its ability to cover its short-term obligations with available cash.
Peer comparison
Dec 31, 2023