American Pacific has a Cash Ratio of 0.81. 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 American Pacific's Cash Ratio or its related term are showing as below:
FRA:ACQ's Cash Ratio is not ranked *
in the Chemicals industry.
Industry Median: 0.54 * Ranked among companies with meaningful Cash Ratio only.
American Pacific Cash Ratio Historical Data
The historical data trend for American Pacific'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 American Pacific's Cash Ratio
For the Specialty Chemicals subindustry, American Pacific'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.
American Pacific's Cash Ratio Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, American Pacific's Cash Ratio distribution charts can be found below:
* The bar in red indicates where American Pacific's Cash Ratio falls into.
American Pacific Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
American Pacific's Cash Ratio for the fiscal year that ended in Sep. 2013 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.
American Pacific (FRA:ACQ) 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.
American Pacific Cash Ratio Related Terms
Thank you for viewing the detailed overview of American Pacific's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
American Pacific Corporation was incorporated in Delaware in December 1980. The Company is a custom manufacturer of fine chemicals, specialty chemicals and propulsion products. It supplies active pharmaceutical ingredients and registered intermediates to the pharmaceutical industry. The pharmaceutical ingredients it manufacture are used by its customers in drugs with indications in three primary areas: anti-viral, oncology, and central nervous system. Its customers include pharmaceutical and biotechnology companies, as well as emerging pharmaceutical companies. Its continuing operations comprise three reportable business segments: Fine Chemicals, Specialty Chemicals, and Other Businesses. The Fine Chemicals segment is operated through its wholly-owned subsidiaries Ampac Fine Chemicals LLC and AMPAC Fine Chemicals Texas, LLC. Specialty Chemicals segment is principally engaged in the production of perchlorates, which include several grades of ammonium perchlorate, sodium perchlorate and potassium perchlorate. In addition, it produce and sell sodium azide, a chemical primarily used in pharmaceutical manufacturing, and Halotron, a series of clean fire extinguishing agents used in fire extinguishing products ranging from portable fire extinguishers to total flooding systems. For the aerospace and defense industry, it provides specialty chemicals used in solid rocket motors for space launch and military missiles. Other Businesses segment contains its water treatment equipment division and real estate activities PEPCON Systems, an operating division of the Company, is a manufacturer and supplier of On-Site Hypochlorite Generation systems.The Company design, manufacture and service equipment used to purify water or air in municipal, industrial and power generation applications. The systems are marketed under the ChlorMaster and Odormaster names. The main competing product to Halotron I is FE36 manufactured by DuPont. The Company's operations are subject to extensive federal, state and local regulations governing, among other things, emissions to air, discharges to water and waste management.
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