Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Verizon Communications Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Current Ratio Analysis
- The current ratio showed fluctuations during the observed periods, beginning at 0.99 in March 2020 and rising to a peak of 1.38 by December 2020. Following this peak, a general declining trend is evident, with values consistently falling below 1.0 from March 2021 onward. By June 2025, the current ratio decreases to 0.64, indicating tightening short-term liquidity over the longer term.
- Quick Ratio Analysis
- The quick ratio followed a somewhat similar trajectory to the current ratio, with an increase from 0.75 in March 2020 to a high of 1.16 in December 2020. After this peak, a downward trend emerges, with the ratio declining consistently below 0.60 from June 2021 onwards. The ratio stabilizes somewhat in later periods but remains low, ending at 0.49 in June 2025. This suggests a reduction in the ability to cover short-term liabilities without relying on inventory.
- Cash Ratio Analysis
- The cash ratio also exhibited variability, starting from a low 0.17 in March 2020 and peaking at 0.56 in December 2020. Subsequently, the ratio decreased significantly, reaching values as low as 0.04 in several quarters during 2022 and beyond. Slight improvements appear intermittently, but overall the cash ratio remains low through to June 2025, finishing at 0.06. This trend points to a constrained level of cash available immediately to settle current liabilities.
- Overall Liquidity Insights
- Liquidity indicators show that the company experienced a peak in liquidity ratios in late 2020, followed by a general decline through subsequent years. This suggests increased pressure on short-term financial health, with lower liquidity buffers observed over time. The consistent decline in all three ratios emphasizes growing challenges in maintaining liquid resources capable of covering current obligations without converting other assets.
Current Ratio
Verizon Communications Inc., current ratio calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current assets | 38,846) | 37,353) | 40,523) | 40,641) | 38,056) | 37,957) | 36,814) | 38,119) | 37,388) | 35,722) | 37,857) | 39,746) | 37,499) | 35,580) | 36,728) | 40,277) | 35,626) | 39,647) | 54,594) | 38,572) | 37,333) | 40,705) | |||||||
| Current liabilities | 60,952) | 61,066) | 64,771) | 61,816) | 60,806) | 53,631) | 53,223) | 55,677) | 51,404) | 47,768) | 50,171) | 53,141) | 49,224) | 46,585) | 47,160) | 41,358) | 40,078) | 38,730) | 39,660) | 36,185) | 38,886) | 41,057) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Current ratio1 | 0.64 | 0.61 | 0.63 | 0.66 | 0.63 | 0.71 | 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 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||||||
| AT&T Inc. | 0.81 | 0.70 | 0.66 | 0.73 | 0.70 | 0.68 | 0.71 | 0.69 | 0.68 | 0.51 | 0.59 | 0.62 | 0.70 | 0.93 | 0.70 | 0.70 | 0.77 | 0.82 | 0.82 | 0.84 | 0.81 | 0.76 | |||||||
| T-Mobile US Inc. | 1.21 | 1.16 | 0.91 | 1.08 | 0.84 | 0.94 | 0.91 | 0.86 | 0.82 | 0.79 | 0.77 | 0.81 | 0.85 | 0.81 | 0.89 | 0.87 | 0.94 | 0.96 | 1.10 | 0.98 | 1.05 | 0.64 | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 38,846 ÷ 60,952 = 0.64
2 Click competitor name to see calculations.
The analysis of the quarterly data reveals notable trends in the liquidity position as measured by current assets, current liabilities, and the current ratio over the observed periods.
- Current Assets
- Current assets display moderate fluctuations without a clear increasing or decreasing trend. Values range mostly between approximately $35 billion and $41 billion over the periods analyzed. Following a peak near the end of 2020 at about $54.6 billion, current assets generally stabilize at lower levels around mid-$30 billion, with slight increases and decreases observed intermittently.
- Current Liabilities
- Current liabilities exhibit a tendency to increase over time, advancing from about $41 billion in early 2020 to heights exceeding $64 billion by mid-2025. There are several marked increases particularly during 2021 and continuing upward through 2024 and 2025, suggesting a rising short-term obligation profile.
- Current Ratio
- The current ratio, reflecting the liquidity buffer, starts close to parity at 0.99 in March 2020 but experiences variability through 2020 and 2021, reaching a peak of 1.38 at year-end 2020. Subsequently, it declines steadily, falling below 1.0 and settling consistently around the 0.60 to 0.75 range through 2022 to 2025. The downward trend in the current ratio indicates a weakening liquidity position, as current liabilities grow at a faster pace than current assets, potentially raising concerns about the company's ability to meet short-term obligations with existing assets.
Overall, the data suggest that while current assets remain relatively stable, the escalation of current liabilities has negatively impacted liquidity ratios. This declining current ratio trend warrants attention and may require strategic financial management to address the increased short-term liabilities relative to assets.
Quick Ratio
Verizon Communications Inc., quick ratio calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cash and cash equivalents | 3,435) | 2,257) | 4,194) | 4,987) | 2,432) | 2,365) | 2,065) | 4,210) | 4,803) | 2,234) | 2,605) | 2,082) | 1,857) | 1,661) | 2,921) | 9,936) | 4,657) | 10,205) | 22,171) | 8,983) | 7,882) | 7,047) | |||||||
| Accounts receivable, net | 26,275) | 25,889) | 26,109) | 25,954) | 25,607) | 25,319) | 25,085) | 23,602) | 23,186) | 22,856) | 24,506) | 23,670) | 23,909) | 23,615) | 23,846) | 22,195) | 21,257) | 22,507) | 23,917) | 22,617) | 22,672) | 23,797) | |||||||
| Total quick assets | 29,710) | 28,146) | 30,303) | 30,941) | 28,039) | 27,684) | 27,150) | 27,812) | 27,989) | 25,090) | 27,111) | 25,752) | 25,766) | 25,276) | 26,767) | 32,131) | 25,914) | 32,712) | 46,088) | 31,600) | 30,554) | 30,844) | |||||||
| Current liabilities | 60,952) | 61,066) | 64,771) | 61,816) | 60,806) | 53,631) | 53,223) | 55,677) | 51,404) | 47,768) | 50,171) | 53,141) | 49,224) | 46,585) | 47,160) | 41,358) | 40,078) | 38,730) | 39,660) | 36,185) | 38,886) | 41,057) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Quick ratio1 | 0.49 | 0.46 | 0.47 | 0.50 | 0.46 | 0.52 | 0.51 | 0.50 | 0.54 | 0.53 | 0.54 | 0.48 | 0.52 | 0.54 | 0.57 | 0.78 | 0.65 | 0.84 | 1.16 | 0.87 | 0.79 | 0.75 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||||||
| AT&T Inc. | 0.40 | 0.34 | 0.28 | 0.29 | 0.30 | 0.29 | 0.33 | 0.32 | 0.35 | 0.22 | 0.27 | 0.26 | 0.31 | 0.68 | 0.45 | 0.46 | 0.34 | 0.37 | 0.47 | 0.49 | 0.52 | 0.43 | |||||||
| T-Mobile US Inc. | 0.86 | 0.88 | 0.70 | 0.84 | 0.64 | 0.73 | 0.68 | 0.64 | 0.65 | 0.58 | 0.57 | 0.62 | 0.62 | 0.58 | 0.66 | 0.65 | 0.75 | 0.72 | 0.84 | 0.70 | 0.76 | 0.36 | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 29,710 ÷ 60,952 = 0.49
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in liquidity and current liabilities over the covered periods.
- Total Quick Assets
- Total quick assets display some volatility across the quarters. Initially, there is a slight increase from 30,844 million USD in March 2020 to 46,088 million USD in December 2020, marking a peak in that period. After this peak, the value generally trends downward, falling to 25,090 million USD by March 2023. Following this decline, total quick assets fluctuate moderately, with occasional minor recoveries, ultimately reaching approximately 29,710 million USD by December 2024. The data suggests a gradual reduction in liquid assets relative to the early period, with intermittent periods of stabilization.
- Current Liabilities
- Current liabilities show a consistent upward trend over the observed quarters. Starting from 41,057 million USD in March 2020, the liabilities steadily increase, reaching a peak of about 64,771 million USD in June 2025. This rising trajectory reflects a growing obligation in the short term, nearly doubling over five years. There are some fluctuations but the general direction remains upward, indicating increased pressure on the company's liquidity position from its liabilities.
- Quick Ratio
- The quick ratio, which measures the ability to cover current liabilities with quick assets, shows a marked decline over the timeframe. Initially, the ratio improves from 0.75 in March 2020 to a high of 1.16 by December 2020, signaling strong liquidity during that period. However, from 2021 onwards, the ratio decreases substantially, falling below 0.5 in several quarters. By June 2025, the quick ratio hovers around 0.49, suggesting that the company's liquid assets are less than half of its current liabilities. This decline points to increased liquidity risk and reduced short-term solvency.
Overall, the combined trends indicate that while the company experienced a solid liquidity position toward the end of 2020, there has been a persistent deterioration in liquidity metrics subsequently. The rising current liabilities contrast with a shrinking quick asset base, leading to a falling quick ratio and highlighting potential challenges in meeting short-term obligations comfortably. This pattern warrants monitoring to ensure adequate liquidity management going forward.
Cash Ratio
Verizon Communications Inc., cash ratio calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cash and cash equivalents | 3,435) | 2,257) | 4,194) | 4,987) | 2,432) | 2,365) | 2,065) | 4,210) | 4,803) | 2,234) | 2,605) | 2,082) | 1,857) | 1,661) | 2,921) | 9,936) | 4,657) | 10,205) | 22,171) | 8,983) | 7,882) | 7,047) | |||||||
| Total cash assets | 3,435) | 2,257) | 4,194) | 4,987) | 2,432) | 2,365) | 2,065) | 4,210) | 4,803) | 2,234) | 2,605) | 2,082) | 1,857) | 1,661) | 2,921) | 9,936) | 4,657) | 10,205) | 22,171) | 8,983) | 7,882) | 7,047) | |||||||
| Current liabilities | 60,952) | 61,066) | 64,771) | 61,816) | 60,806) | 53,631) | 53,223) | 55,677) | 51,404) | 47,768) | 50,171) | 53,141) | 49,224) | 46,585) | 47,160) | 41,358) | 40,078) | 38,730) | 39,660) | 36,185) | 38,886) | 41,057) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Cash ratio1 | 0.06 | 0.04 | 0.06 | 0.08 | 0.04 | 0.04 | 0.04 | 0.08 | 0.09 | 0.05 | 0.05 | 0.04 | 0.04 | 0.04 | 0.06 | 0.24 | 0.12 | 0.26 | 0.56 | 0.25 | 0.20 | 0.17 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||||||
| AT&T Inc. | 0.22 | 0.14 | 0.07 | 0.06 | 0.07 | 0.08 | 0.13 | 0.15 | 0.18 | 0.05 | 0.07 | 0.05 | 0.08 | 0.47 | 0.25 | 0.26 | 0.14 | 0.15 | 0.15 | 0.16 | 0.24 | 0.14 | |||||||
| T-Mobile US Inc. | 0.46 | 0.51 | 0.27 | 0.47 | 0.28 | 0.33 | 0.25 | 0.23 | 0.27 | 0.19 | 0.18 | 0.26 | 0.15 | 0.15 | 0.28 | 0.21 | 0.36 | 0.34 | 0.48 | 0.33 | 0.48 | 0.08 | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 3,435 ÷ 60,952 = 0.06
2 Click competitor name to see calculations.
The analysis of the financial data over the reported periods reveals several noteworthy trends related to liquidity and short-term financial stability.
- Total Cash Assets
- Total cash assets exhibit significant volatility across the quarters. Initially, there is a steady increase from 7,047 million USD in March 2020 to a peak of 22,171 million USD in December 2020. This peak is followed by a sharp decline in the subsequent quarters, reducing cash balances to as low as 1,661 million USD by March 2022. After this trough, cash assets generally stabilize at lower levels, fluctuating between approximately 2,000 and 5,000 million USD through mid-2025, without returning to the previous peak values.
- Current Liabilities
- Current liabilities demonstrate an upward trend over the timeframe. Starting at 41,057 million USD in March 2020, liabilities show gradual increases with some fluctuations, reaching a high of 64,771 million USD in June 2025. There is a noticeable increase in liabilities particularly from the end of 2021 through 2024, indicating growing short-term obligations. Some minor decreases occur intermittently but the overall pattern is an increasing liability burden.
- Cash Ratio
- The cash ratio, which measures the ability to meet short-term liabilities with cash assets, follows a declining trend overall. Initially, it improves from 0.17 in March 2020 to 0.56 in December 2020, coinciding with the peak in cash assets. However, following this peak, the cash ratio declines sharply and remains low, fluctuating mostly between 0.04 and 0.09. This indicates a reduced coverage of current liabilities by cash assets in recent periods, suggesting tighter liquidity conditions.
In summary, the data exhibits a pronounced cash reserve spike in late 2020 followed by a retreat to lower cash levels. Meanwhile, current liabilities consistently increase over time, outpacing growth in cash assets and resulting in a substantially lower cash ratio. This pattern points to potentially constrained liquidity, with a reduced cushion of readily available cash to cover short-term liabilities in recent quarters and going forward.