Verizon Communications Inc (VZ)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,065,000 | 2,605,000 | 2,921,000 | 22,171,000 | 2,594,000 |
| Short-term investments | US$ in thousands | — | 37,000 | 18,000 | 589,000 | — |
| Receivables | US$ in thousands | 25,996,000 | 24,506,000 | 23,846,000 | 23,917,000 | 25,429,000 |
| Total current liabilities | US$ in thousands | 53,223,000 | 50,171,000 | 47,160,000 | 39,660,000 | 44,868,000 |
| Quick ratio | 0.53 | 0.54 | 0.57 | 1.18 | 0.62 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,065,000K
+ $—K
+ $25,996,000K)
÷ $53,223,000K
= 0.53
The quick ratio of Verizon Communications Inc has fluctuated over the past five years, indicating varying levels of liquidity.
As of December 31, 2023, the quick ratio stood at 0.63, reflecting a decrease from the previous year's ratio of 0.68. This suggests that Verizon may have experienced a reduction in its ability to meet its short-term obligations using its most liquid assets.
Comparing this to previous years, the quick ratio was also lower than the ratios in 2021 (0.69) and 2019 (0.78), indicating a potential worsening liquidity position in 2023.
The significant drop in the quick ratio compared to December 31, 2020 (1.30) is notable and may raise concerns about Verizon's ability to cover its short-term liabilities with its quick assets. This decrease could be a result of changes in the company's current assets and liabilities composition.
In conclusion, the decreasing trend in Verizon's quick ratio over the years signals a potential liquidity challenge that investors and stakeholders should monitor closely. Further analysis of the company's current assets and liabilities is warranted to understand the underlying factors contributing to this trend.
Peer comparison
Dec 31, 2023