Stock Analysis on Net

Verizon Communications Inc. (NYSE:VZ)

Analysis of Liquidity Ratios

Microsoft Excel LibreOffice Calc

Liquidity Ratios (Summary)

Verizon Communications Inc., liquidity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Current ratio 0.78 1.38 0.84 0.91 0.91
Quick ratio 0.57 1.16 0.62 0.73 0.77
Cash ratio 0.06 0.56 0.06 0.07 0.06

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Verizon Communications Inc. current ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Verizon Communications Inc. quick ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Verizon Communications Inc. cash ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level.

Current Ratio

Verizon Communications Inc., current ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current assets 36,728  54,594  37,473  34,636  29,913 
Current liabilities 47,160  39,660  44,868  37,930  33,037 
Liquidity Ratio
Current ratio1 0.78 1.38 0.84 0.91 0.91
Benchmarks
Current Ratio, Competitors2
AT&T Inc. 0.70 0.82 0.79 0.80 0.97
T-Mobile US Inc. 0.89 1.10 0.74 0.81 0.77
Current Ratio, Sector
Telecommunication Services 0.75 1.05 0.80 0.84 0.94
Current Ratio, Industry
Communication Services 1.39 1.71 1.47 1.54 1.59

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 36,728 ÷ 47,160 = 0.78

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Verizon Communications Inc. current ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.

Quick Ratio

Verizon Communications Inc., quick ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Cash and cash equivalents 2,921  22,171  2,594  2,745  2,079 
Accounts receivable, net 23,846  23,917  25,429  25,102  23,493 
Total quick assets 26,767  46,088  28,023  27,847  25,572 
 
Current liabilities 47,160  39,660  44,868  37,930  33,037 
Liquidity Ratio
Quick ratio1 0.57 1.16 0.62 0.73 0.77
Benchmarks
Quick Ratio, Competitors2
AT&T Inc. 0.45 0.47 0.50 0.49 0.82
T-Mobile US Inc. 0.66 0.84 0.48 0.54 0.47
Quick Ratio, Sector
Telecommunication Services 0.52 0.76 0.54 0.58 0.78
Quick Ratio, Industry
Communication Services 1.20 1.51 1.25 1.30 1.42

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 26,767 ÷ 47,160 = 0.57

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Verizon Communications Inc. quick ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.

Cash Ratio

Verizon Communications Inc., cash ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Cash and cash equivalents 2,921  22,171  2,594  2,745  2,079 
Total cash assets 2,921  22,171  2,594  2,745  2,079 
 
Current liabilities 47,160  39,660  44,868  37,930  33,037 
Liquidity Ratio
Cash ratio1 0.06 0.56 0.06 0.07 0.06
Benchmarks
Cash Ratio, Competitors2
AT&T Inc. 0.25 0.15 0.18 0.08 0.62
T-Mobile US Inc. 0.28 0.48 0.12 0.12 0.11
Cash Ratio, Sector
Telecommunication Services 0.20 0.34 0.13 0.08 0.43
Cash Ratio, Industry
Communication Services 0.79 1.06 0.81 0.81 1.00

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 2,921 ÷ 47,160 = 0.06

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Verizon Communications Inc. cash ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level.