Hangzhou Zhongheng Electric Co has a Cash Ratio of 0.54. 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 Hangzhou Zhongheng Electric Co's Cash Ratio or its related term are showing as below:
SZSE:002364'
s Cash Ratio Range Over the Past 10 Years
Min: 0.26 Med: 0.54 Max: 4.2
Current: 0.54
During the past 13 years, Hangzhou Zhongheng Electric Co's highest Cash Ratio was 4.20. The lowest was 0.26. And the median was 0.54.
SZSE:002364's Cash Ratio is ranked better than 50.37% of 2980
companies
in the Industrial Products industry
Industry Median: 0.54
vs SZSE:002364: 0.54
Hangzhou Zhongheng Electric Co Cash Ratio Historical Data
* 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 Hangzhou Zhongheng Electric Co's Cash Ratio
For the Electrical Equipment & Parts subindustry, Hangzhou Zhongheng Electric Co'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.
Hangzhou Zhongheng Electric Co's Cash Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hangzhou Zhongheng Electric Co's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Hangzhou Zhongheng Electric Co's Cash Ratio falls into.
Hangzhou Zhongheng Electric Co Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
* 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.
Hangzhou Zhongheng Electric Co (SZSE:002364) 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.
Hangzhou Zhongheng Electric Co Cash Ratio Related Terms
Thank you for viewing the detailed overview of Hangzhou Zhongheng Electric Co's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Hangzhou Zhongheng Electric Co (SZSE:002364) Business Description
Hangzhou Zhongheng Electric Co Ltd is a China-based provider of electric power informatization software and consulting services. It offers high-frequency switching power systems for the telecommunication, electricity generation, and railway industries. The business segments of the company are Power informatization and Power electronics manufacturing. The products of the company are offered in the categories of power information, electronic manufacturing and energy internet. Its products include power IoT monitoring products, power production lean management products, relay protection setting calculation system, electric vehicle charging station equipment, high-voltage DC power system, energy internet products, and others.
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