Verizon Communications Inc (VZ)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 36,814,000 | 37,857,000 | 36,728,000 | 54,594,000 | 37,473,000 |
| Total current liabilities | US$ in thousands | 53,223,000 | 50,171,000 | 47,160,000 | 39,660,000 | 44,868,000 |
| Current ratio | 0.69 | 0.75 | 0.78 | 1.38 | 0.84 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $36,814,000K ÷ $53,223,000K
= 0.69
Verizon Communications Inc's current ratio has exhibited fluctuating trends in recent years. The current ratio decreased from 1.38 in 2020 to 0.69 in 2023, indicating a significant decline in short-term liquidity. This suggests that the company may have difficulties meeting its short-term obligations with its current assets in 2023. It is important to note that a current ratio below 1 typically raises concerns about a company's ability to cover its short-term liabilities with its current assets. Further analysis of Verizon's liquidity position and current asset management practices may be warranted to address the declining trend in the current ratio.
Peer comparison
Dec 31, 2023