Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
Based on: 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
- The current ratio exhibited variability over the observed period. Initially, it fluctuated near unity with values close to 1.0 in early 2020, reaching a peak of 1.38 by the end of 2020. From 2021 onward, the ratio demonstrated a declining trend, moving below 1.0 and progressively decreasing to 0.61 by the first quarter of 2025. This downward trend suggests a gradual reduction in short-term liquidity available to cover current liabilities through the end of the examined timeframe.
- Quick Ratio
- The quick ratio followed a similar trajectory to the current ratio. It began near 0.75 in early 2020 and increased to a peak of 1.16 by the end of 2020, indicating improved liquidity excluding inventory during that time. However, starting in 2021, the ratio declined steadily, falling to 0.46 by the first quarter of 2025. This indicates that the company's liquid assets available to meet short-term obligations diminished consistently over the later years.
- Cash Ratio
- The cash ratio showed significant volatility but remained relatively low throughout the period. Beginning at 0.17 in the first quarter of 2020, it rose to a high of 0.56 near the end of 2020, reflecting moments of stronger cash and cash equivalents relative to current liabilities. Nevertheless, the ratio sharply decreased subsequently and remained mostly below 0.1 from mid-2021 onward, occasionally spiking but never regaining previous highs. By early 2025, it declined further to 0.04, indicating minimal cash reserves on hand in relation to current liabilities.
Current Ratio
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 | ||||||||
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Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||||||
Liquidity Ratio | ||||||||||||||||||||||||||||
Current ratio1 | ||||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||||
Current Ratio, Competitors2 | ||||||||||||||||||||||||||||
AT&T Inc. | ||||||||||||||||||||||||||||
T-Mobile US Inc. |
Based on: 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 Q1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- Current assets experienced fluctuations over the analyzed period. Starting at approximately 40.7 billion USD in March 2020, the value decreased to around 37.3 billion USD by June 2020, before rising significantly to a peak of about 54.6 billion USD at the end of 2020. Following this peak, current assets showed a downward trend with intermittent recoveries, generally stabilizing between 35.7 billion and 38.1 billion USD from early 2023 through mid-2024. Toward the end of 2024 and into early 2025, current assets decreased again, ending around 37.4 billion USD.
- Current Liabilities
- Current liabilities demonstrated an overall increasing trend throughout the period under review. Beginning slightly above 41 billion USD in the first quarter of 2020, liabilities experienced a steady rise with some volatility. Notable increases occurred during 2021 and 2022, with liabilities reaching peaks above 64 billion USD by the end of 2024. This upward movement indicates a growing short-term obligation load on the company.
- Current Ratio
- The current ratio, which measures short-term liquidity by comparing current assets to current liabilities, displayed a declining trend over time. Initially near parity at 0.99 in March 2020, the ratio briefly improved to a high of 1.38 in December 2020, indicating a strong liquidity position at that point. However, thereafter, the ratio steadily decreased, falling below 0.8 by late 2021 and continuing to decline toward 0.61 by the first quarter of 2025. This consistent reduction suggests a diminishing ability to cover short-term liabilities with short-term assets, potentially signaling increased liquidity risk.
- Overall Analysis
- The data reveals an environment where current liabilities have been rising at a faster pace than current assets, negatively impacting liquidity as measured by the current ratio. The peak in current assets near the end of 2020 may reflect temporary strategic adjustments or atypical financial events, but the subsequent reduction in the current ratio suggests that the company is increasingly leveraged in the short term. This pattern points to a potential need for attention to working capital management to ensure ongoing operational stability.
Quick Ratio
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 | ||||||||
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Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||||
Accounts receivable, net | ||||||||||||||||||||||||||||
Total quick assets | ||||||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||||||
Liquidity Ratio | ||||||||||||||||||||||||||||
Quick ratio1 | ||||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||||
Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||
AT&T Inc. | ||||||||||||||||||||||||||||
T-Mobile US Inc. |
Based on: 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 Q1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly data reveals notable fluctuations in the liquidity position over the observed periods. Total quick assets demonstrated variability with an initial increase reaching a peak of 46,088 million US dollars by the end of 2020, followed by a general decline through subsequent quarters, hitting lower values near the end of the period, but with some occasional recovery in the mid-2024 timeframe.
Current liabilities also showed a marked upward trend, beginning at 41,057 million US dollars in the first quarter of 2020 and increasing steadily to reach values exceeding 64,000 million US dollars during late 2024. This rising trajectory of current liabilities paired with the fluctuating yet generally declining quick assets indicates increasing short-term financial obligations.
The quick ratio — a key indicator of short-term financial health — initially moved from 0.75 in the first quarter of 2020 to a peak of 1.16 at the end of the same year, reflecting stronger liquidity. However, the ratio then experienced a consistent decline, falling below 0.5 in several quarters during 2022 through 2025, indicating that quick assets have become insufficient to cover current liabilities adequately during those periods.
In summary, the data reveals a deteriorating liquidity condition over the term, primarily driven by a steady rise in current liabilities outpacing the slower growth or decline in quick assets. The period post-2020 shows a significant decline in the quick ratio, suggesting increasing pressure on short-term financial stability.
- Total Quick Assets
- Peaked in December 2020 and then generally declined, showing recovery attempts in mid-2024 but remaining below early 2020 levels.
- Current Liabilities
- Consistently increased from early 2020 through 2024, reflecting growing short-term obligations.
- Quick Ratio
- Initially increased to above 1.0 by late 2020, followed by a steady decrease, falling below the critical threshold of 1.0 and hovering around 0.46 to 0.5 in recent quarters, signaling reduced liquidity coverage.
Cash Ratio
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 | ||||||||
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Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||||
Total cash assets | ||||||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||||||
Liquidity Ratio | ||||||||||||||||||||||||||||
Cash ratio1 | ||||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||||
Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||
AT&T Inc. | ||||||||||||||||||||||||||||
T-Mobile US Inc. |
Based on: 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 Q1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets exhibit significant volatility throughout the observed periods. Starting at 7,047 million US dollars in the first quarter of 2020, cash holdings rose steadily to a peak of 22,171 million by the fourth quarter of 2020. This peak was followed by a sharp decline through 2021, reaching lows near 2,921 million by year-end 2021. Subsequently, cash levels fluctuated between approximately 1,661 million and 4,803 million over 2022 and 2023, showing no clear upward or downward trend. In early 2024, cash assets displayed a modest recovery, peaking again around 4,987 million before declining slightly towards the first quarter of 2025.
- Current Liabilities
- Current liabilities demonstrated a generally increasing trend across the time frame. Beginning at 41,057 million US dollars in the first quarter of 2020, liabilities fluctuated mildly but remained elevated, rising from mid-30,000s to high 40,000s throughout 2020 and 2021. From 2022 onwards, liabilities showed a clear incremental trend, moving from around 46,585 million in the first quarter of 2022 to reach a peak of approximately 64,771 million in the fourth quarter of 2024. Slight reductions occur at the start of 2025 but remain above earlier period levels.
- Cash Ratio
- The cash ratio, reflecting liquidity measured as total cash assets divided by current liabilities, portrays diminished liquidity over the analyzed periods. Initially, the ratio improved markedly from 0.17 in March 2020, peaking at 0.56 by December 2020, indicating a strong liquidity position. This was followed by a rapid drop through 2021 to lows near 0.06 and stabilizing somewhat thereafter. Throughout 2022 and early 2023, the ratio consistently remained low, generally between 0.04 and 0.09, suggesting relatively tight short-term liquidity relative to obligations. In late 2024 to early 2025, the ratio again declined slightly, settling around 0.04 to 0.06, consistent with the ongoing increase in current liabilities and modest fluctuations in cash assets.
- Summary
- The overall financial liquidity picture indicates substantial fluctuations in cash levels, with a notable peak in late 2020, but a subsequent trend of reduced cash reserves despite rising current liabilities. The steady increase in liabilities without a proportional increase in cash reserves has weakened short-term liquidity, as reflected in the declining cash ratio over recent years. This pattern suggests increasing pressure on the company's ability to cover short-term obligations purely with cash assets, highlighting potential challenges in liquidity management moving forward.