Cornerstone OnDemand has a Cash Ratio of 0.27. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Cornerstone OnDemand's Cash Ratio or its related term are showing as below:
CSOD'
s Cash Ratio Range Over the Past 10 Years
Min: 0.14 Med: 0.97 Max: 2.37
Current: 0.27
During the past 13 years, Cornerstone OnDemand's highest Cash Ratio was 2.37. The lowest was 0.14. And the median was 0.97.
CSOD's Cash Ratio is not ranked
in the Software industry.
Industry Median: 0.76
vs CSOD: 0.27
Cornerstone OnDemand Cash Ratio Historical Data
The historical data trend for Cornerstone OnDemand's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Cornerstone OnDemand's Cash Ratio
For the Software - Application subindustry, Cornerstone OnDemand's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cornerstone OnDemand's Cash Ratio Distribution in the Software Industry
For the Software industry and Technology sector, Cornerstone OnDemand's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Cornerstone OnDemand's Cash Ratio falls into.
Cornerstone OnDemand Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Cornerstone OnDemand's Cash Ratio for the fiscal year that ended in Dec. 2020 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Cornerstone OnDemand (NAS:CSOD) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Cornerstone OnDemand Cash Ratio Related Terms
Thank you for viewing the detailed overview of Cornerstone OnDemand's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Cornerstone OnDemand (Cornerstone OnDemand) Business Description
Cornerstone OnDemand is a fast-growing provider of cloud-based talent-management solutions. While the company is best known for its learning management application, which is considered best in class, the company's products have evolved in recent years, with the company adding features such as recruiting, performance and other development tools. Most of the revenue is recurring, as the company is de-emphasizing implementation services and will rely more on integration partners going forward. As of the end of 2018, the company served 3,535 clients with more than 40 million users across more than 190 countries.
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