Verizon Communications Inc (VZ)
Cash ratio
| 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 and cash equivalents | US$ in thousands | 4,194,000 | 4,987,000 | 2,432,000 | 2,365,000 | 2,065,000 | 4,210,000 | 4,803,000 | 2,234,000 | 2,605,000 | 2,082,000 | 1,857,000 | 1,661,000 | 2,921,000 | 9,936,000 | 4,657,000 | 10,205,000 | 22,171,000 | 8,983,000 | 7,882,000 | 7,047,000 |
| Short-term investments | US$ in thousands | — | — | 15,000 | 19,000 | -261,000 | 32,000 | 41,000 | 59,000 | 37,000 | 32,000 | 19,000 | — | — | 1,100,000 | 560,000 | 555,000 | 589,000 | 535,000 | — | — |
| Total current liabilities | US$ in thousands | 64,771,000 | 61,816,000 | 60,806,000 | 53,631,000 | 53,223,000 | 55,677,000 | 51,404,000 | 47,768,000 | 50,171,000 | 53,141,000 | 49,224,000 | 46,585,000 | 47,160,000 | 41,358,000 | 40,078,000 | 38,730,000 | 39,660,000 | 36,185,000 | 38,886,000 | 41,057,000 |
| Cash ratio | 0.06 | 0.08 | 0.04 | 0.04 | 0.03 | 0.08 | 0.09 | 0.05 | 0.05 | 0.04 | 0.04 | 0.04 | 0.06 | 0.27 | 0.13 | 0.28 | 0.57 | 0.26 | 0.20 | 0.17 |
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 over the period from March 31, 2020, to December 31, 2024, fluctuated within a range of 0.03 to 0.57. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations without relying on external financing.
Verizon's cash ratio peaked at 0.57 on December 31, 2020, indicating a significant proportion of cash and equivalents relative to its current liabilities at that time. However, there was a notable decline in the cash ratio in subsequent periods, reaching a low of 0.03 on December 31, 2023, before recovering slightly to 0.06 on December 31, 2024.
The decrease in the cash ratio over time may suggest that Verizon had lower levels of cash relative to its short-term liabilities in the later periods, which could potentially increase the company's risk of facing liquidity challenges. It is important for investors and analysts to monitor changes in the cash ratio to assess the company's short-term liquidity position and its ability to meet obligations as they come due.
Peer comparison
Dec 31, 2024