iGate (FRA:MS4) Cash Ratio : 0.61 (As of Mar. 2015)

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What is iGate Cash Ratio?

The Cash Ratio measures a company’s ability to meet its short-term obligations with cash and near-cash resources. It is calculated as a company's Cash, Cash Equivalents, Marketable Securities divides by its Total Current Liabilities. iGate's Cash Ratio for the quarter that ended in Mar. 2015 was 0.61.

iGate has a Cash Ratio of 0.61. 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 iGate's Cash Ratio or its related term are showing as below:

FRA:MS4's Cash Ratio is not ranked ^*
in the Software industry.
Industry Median: 0.74
* Ranked among companies with meaningful Cash Ratio only.

iGate Cash Ratio Historical Data

The historical data trend for iGate'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.

* Premium members only.

iGate Cash Ratio Chart

iGate Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Cash Ratio

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2.51

1.70

2.10

0.57

0.67

iGate Quarterly Data
	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15
Cash Ratio	Get a 7-Day Free Trial															0.37	0.93	0.82	0.67	0.61

Competitive Comparison of iGate's Cash Ratio

For the Information Technology Services subindustry, iGate'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.

iGate's Cash Ratio Distribution in the Software Industry

For the Software industry and Technology sector, iGate's Cash Ratio distribution charts can be found below:

* The bar in red indicates where iGate's Cash Ratio falls into.

iGate Cash Ratio Calculation

The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.

iGate's Cash Ratio for the fiscal year that ended in Dec. 2014 is calculated as:

Cash Ratio (A: Dec. 2014 )	=	Cash, Cash Equivalents, Marketable Securities	/	Total Current Liabilities
	=	151.389	/	227.638
	=	0.67

iGate's Cash Ratio for the quarter that ended in Mar. 2015 is calculated as:

Cash Ratio (Q: Mar. 2015 )	=	Cash, Cash Equivalents, Marketable Securities	/	Total Current Liabilities
	=	135.979	/	224.077
	=	0.61

iGate (FRA:MS4) 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.

iGate Cash Ratio Related Terms

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iGate (FRA:MS4) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » iGate Corp (FRA:MS4) » Definitions » Cash Ratio

Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.igate.com

Igate Corp was founded in 1986. The Company is an outsourcing provider of integrated end-to-end offshore centric information technology (IT) and IT-enabled operations solutions and services. The Company delivers various IT services through international integrated onsite and offshore delivery locations mainly in India. The Company provides its services to customers through industry focused practices, including insurance and healthcare (IHC), manufacturing, retail and logistics (MRDL), banking and financial services (BFS"), communications and utilities (CEU), and media and entertainment (MELT) and through technology focused practices. It offers services to customers through industry focused practices, including insurance and healthcare, life sciences, manufacturing, retail and logistics, banking and financial services, communications, energy and utilities, product and engineering solutions, government solutions and media and entertainment. Its IT and IT-enabled services include application development, application management, verification and validation, enterprise application solutions, business intelligence and data warehousing, infrastructure management services, enterprise mobility, cloud services, embedded systems development, engineering design services, IT consulting, IT governance and customized learning solutions, business process outsourcing ("BPO") and customer interaction services. The Company has operations in India, Canada, the United States, Europe, Mexico, Singapore, Malaysia, Japan, Australia, the United Arab Emirates, South Africa, Turkey, South Korea, China, Switzerland and the United Kingdom. The Company delivers effective solutions to more than 360 Fortune 1000 clients. The Company's main competitors in the IT and IT enabled outsourcing industry include IT outsourcing firms, consulting firms, systems integration-firms and general management consulting firms such as Tata Consultancy Services Limited, Infosys Technologies Limited, Cognizant Technology Solutions Corporation, Wipro Limited, Genpact Limited, WNS (Holdings) Limited, EXLService Holdings Inc., Syntel Inc., Mindtree Limited, and Hexaware Technologies Limited. The Company is subject to numerous, and sometimes conflicting, legal regimes on matters as diverse as anticorruption, import/export controls, content requirements, trade restrictions, tariffs, taxation, sanctions, immigration, internal and disclosure control obligations, securities regulation, anti-competition, data privacy and labor relations.

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