If one assumes that the Postal Service no longer had retiree health care payments, would its liquidity improve sufficiently to move it away from a range commonly found among firms that face bankruptcy in the private sector?
The following table answers this question. It updates the liquidity measure contained in the previous post by eliminating retiree health care expenses as a current liability.
- $4.909 billion -- Revenue collected for services to be rendered
- $1.014 billion -- Cash on hand
- $3.894 billion -- Cash shortfall to be born by future Postal Service customers
The liquidity problem should be a concern to all stakeholders. The future of viable self-sufficient means of delivering the 150 billion pieces of hard copy communications and parcels expected to be sent in 2020 depend on solving this problem.