Verizon Communications Inc (VZ)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	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	2,594,000	3,020,000	1,949,000	2,322,000
Short-term investments	US$ in thousands	—	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	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	44,868,000	39,209,000	38,214,000	38,607,000
Cash ratio		0.04	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	0.06	0.08	0.05	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, which measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, has fluctuated over the past eight quarters. The trend shows some variability with values ranging from 0.15 to 0.24.

In Q4 2023, the cash ratio was at 0.16, indicating that the company had $0.16 in cash and cash equivalents for every dollar of current liabilities. This ratio increased from the previous quarter but is lower than the ratios observed in Q2 and Q3 2023.

Although the cash ratio has fluctuated, it generally remained within a relatively stable range between 0.15 and 0.24 throughout the eight quarters. This suggests that Verizon has been able to maintain a sufficient level of liquidity to cover its short-term obligations during this period.

However, it is important to note that a low cash ratio may indicate that the company is not efficiently utilizing its cash or may have liquidity concerns. Conversely, a high cash ratio may suggest that the company is not investing its excess cash in opportunities for growth.

Overall, further analysis and comparison with industry benchmarks would be necessary to draw more comprehensive conclusions about Verizon Communications Inc's liquidity position.