Asia Power has a Cash Ratio of 1.44. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for Asia Power's Cash Ratio or its related term are showing as below:
FRA:A8Q's Cash Ratio is not ranked *
in the Utilities - Independent Power Producers industry.
Industry Median: 0.42 * Ranked among companies with meaningful Cash Ratio only.
Asia Power Cash Ratio Historical Data
The historical data trend for Asia Power'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.
For the Utilities - Independent Power Producers subindustry, Asia Power'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.
Asia Power's Cash Ratio Distribution in the Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Asia Power's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Asia Power's Cash Ratio falls into.
Asia Power Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Asia Power's Cash Ratio for the fiscal year that ended in Dec. 2012 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.
Asia Power (FRA:A8Q) 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.
Asia Power Cash Ratio Related Terms
Thank you for viewing the detailed overview of Asia Power's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Asia Power Corporation Limited is incorporated in Singapore. The Company is engaged in the business of ownership, management and operation of power plants in China. The Company operates under the following segments: Power plant operations which include owning, managing and operating power plants to generate and sell power, heat and steam; Power-related technology which includes design, manufacture and assembly of computerized automation systems which are used for the regulation of electricity flow and protection of power grids; Investment holding and others which include Holding of long-term investments and provision of power related business consultancy and management services.
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