Diamond Foods has a Cash Ratio of 0.03. 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 Diamond Foods's Cash Ratio or its related term are showing as below:
DMND's Cash Ratio is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 0.39 * Ranked among companies with meaningful Cash Ratio only.
Diamond Foods Cash Ratio Historical Data
The historical data trend for Diamond Foods'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 Diamond Foods's Cash Ratio
For the Packaged Foods subindustry, Diamond Foods'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.
Diamond Foods's Cash Ratio Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Diamond Foods's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Diamond Foods's Cash Ratio falls into.
Diamond Foods Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Diamond Foods's Cash Ratio for the fiscal year that ended in Jul. 2015 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.
Diamond Foods (NAS:DMND) 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.
Diamond Foods Cash Ratio Related Terms
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Diamond Foods (Diamond Foods) Business Description
Diamond Foods Inc was incorporated in Delaware in 2005 as the successor to Diamond Walnut Growers, Inc., a member-owned California agricultural cooperative association. In July 2005, Diamond Walnut Growers, Inc. merged with and into Diamond Foods, Inc., converted from a cooperative association to a Delaware corporation and completed an initial public offering of Diamond Foods' common stock. The Company is a packaged food company focused on building and energizing brands. It is engaged in processing, marketing and distributing snack products and culinary, in-shell and ingredient nuts. The Company's segments include Snacks and Nuts. The Company sells snack products under Kettle Brand(r) and Pop Secret(r) brands. Microwave popcorn products are offered in traditional flavors. In March 2010, the Company complemented its snack portfolio with the acquisition of Kettle Foods, a premium potato chip company. Kettle Foods products are offered in a variety of flavors and sizes. Its snack products are typically available in grocery store snack, natural and produce aisles, mass merchandisers, club stores, convenience stores, drug stores, natural food stores and other places where snacks are sold. Under the nuts segment the Company sells nut products under the Emerald brand, and Diamond of California(r) brand in grocery store baking aisles and produce aisles and through mass merchandisers and club stores. Culinary nuts are marketed to individuals who prepare meals or baked goods at home and who value fresh, high-quality products. The Company also sell in-shell nuts under the Diamond of California(r) brand during the winter holiday season. Its non-retail nut business includes international markets and North American ingredient customers. It market ingredient nuts internationally under the Diamond of California(r) brand to food processors, restaurants, bakeries and food service companies and their suppliers. Diamond's institutional and industrial customers use its standard or customer-specified products to add flavor and texture in their product offerings. It also sells in-shell nuts to international markets. Emerald products include roasted, glazed and flavored nuts, trail mixes, granola, dried fruit and similar offerings that are sold where snack nuts and convenient breakfast items are sold. The Company obtains its raw materials from domestic and international sources. The Company's products competes with other food industries. It is subject to governmental laws and regulations.
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