Verizon Communications Inc (VZ)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 40,523,000 | 36,814,000 | 37,857,000 | 36,728,000 | 54,594,000 |
| Total current liabilities | US$ in thousands | 64,771,000 | 53,223,000 | 50,171,000 | 47,160,000 | 39,660,000 |
| Current ratio | 0.63 | 0.69 | 0.75 | 0.78 | 1.38 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $40,523,000K ÷ $64,771,000K
= 0.63
Verizon Communications Inc's current ratio has exhibited a decreasing trend over the past five years, declining from 1.38 in December 31, 2020, to 0.63 in December 31, 2024.
A current ratio below 1 may indicate liquidity challenges as current liabilities exceed current assets, potentially raising concerns about the company's ability to meet its short-term obligations.
It is important for Verizon to closely monitor and manage its current assets and liabilities to ensure it maintains a healthy liquidity position that enables it to fulfill its short-term financial obligations efficiently.
Peer comparison
Dec 31, 2024