Verizon Communications Inc (VZ)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 4,194,000 | 2,065,000 | 2,605,000 | 2,921,000 | 22,171,000 |
| Short-term investments | US$ in thousands | — | -261,000 | -379,000 | 18,000 | -1,246,000 |
| Receivables | US$ in thousands | 27,309,000 | 25,996,000 | 24,506,000 | 23,846,000 | 23,917,000 |
| Total current liabilities | US$ in thousands | 64,771,000 | 53,223,000 | 50,171,000 | 47,160,000 | 39,660,000 |
| Quick ratio | 0.49 | 0.52 | 0.53 | 0.57 | 1.13 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,194,000K
+ $—K
+ $27,309,000K)
÷ $64,771,000K
= 0.49
Verizon Communications Inc's quick ratio has shown a declining trend over the past five years, dropping from 1.13 as of December 31, 2020 to 0.49 as of December 31, 2024. This indicates that the company's ability to meet its short-term obligations with its most liquid assets has weakened over the period. The decreasing quick ratio suggests that Verizon may be facing challenges in converting its current assets to cash quickly enough to cover its current liabilities. It is essential for the company to closely monitor this ratio and take appropriate measures to improve its liquidity position in the future.
Peer comparison
Dec 31, 2024