Verizon Communications Inc (VZ)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 36,814,000 | 38,119,000 | 37,388,000 | 35,722,000 | 37,857,000 | 39,746,000 | 37,499,000 | 35,580,000 | 36,728,000 | 40,277,000 | 35,626,000 | 39,647,000 | 54,594,000 | 38,572,000 | 37,333,000 | 40,705,000 | 37,473,000 | 34,895,000 | 33,308,000 | 33,397,000 |
| 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 |
| Current ratio | 0.69 | 0.68 | 0.73 | 0.75 | 0.75 | 0.75 | 0.76 | 0.76 | 0.78 | 0.97 | 0.89 | 1.02 | 1.38 | 1.07 | 0.96 | 0.99 | 0.84 | 0.89 | 0.87 | 0.87 |
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 shown moderate fluctuations over the past eight quarters. The current ratio, which indicates the company's ability to meet its short-term obligations with its current assets, has hovered around the range of 0.68 to 0.76.
The current ratio was at its lowest point in Q4 2023 at 0.69 and has been gradually decreasing from the previous quarter. This signifies that Verizon may potentially face challenges in meeting its short-term liabilities with its current assets. However, it is important to note that the current ratio has exceeded 0.70 in most quarters, indicating that Verizon has generally been able to cover its short-term obligations comfortably.
A lower current ratio could indicate inefficiencies in managing current assets or potential liquidity issues. It would be crucial for Verizon to analyze the components of current assets and liabilities contributing to this trend, to ensure the company's financial health and ability to fulfill its short-term commitments.
Peer comparison
Dec 31, 2023