Verizon Ratio Analysis

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The Table 2, above, shows a current ratio CR of 1.2215 and a quick ratio QR of 1.04545. Further, one could notice a DSO 40 times and a DSI of 4 times. Moreover, the current rate is superior to one; therefore, it reveals that Verizon has sufficient financial resources to cover its obligations. It can take care of its short-term obligations with its present existing liquid assets. Further, its quick ratio is more than one. Thus, Verizon has enough cash and receivables to cover its current liabilities. The DSO of 40 times shows that Verizon spends 40 days to collect on its outstanding accounts. This number is less than 90 days; therefore the company presents an expansionary credit policy. Impressively, Verizon spends only four days on selling

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