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Arafura Rare EarthsARAFF -6.91%34 Cash Ratio is 127.22 as of Dec. 2025, which is 1720% above its 10-year median of 6.99. GuruFocus rates ARAFF with a GF Score™ of 34/100. The stock has 1 warning sign investors should review. Among 2,571 Metals & Mining companies, Arafura Rare Earths ranks better than 99.11% on this metric.
Arafura Rare Earths has a Cash Ratio of 127.22. 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 Arafura Rare Earths's Cash Ratio or its related term are showing as below:
ARAFF'
s Cash Ratio Range Over the Past 10 Years
Min: 1.86 Med: 6.99 Max: 127.22
Current: 127.22
During the past 13 years, Arafura Rare Earths's highest Cash Ratio was 127.22. The lowest was 1.86. And the median was 6.99.
ARAFF's Cash Ratio is ranked better than 99.11% of 2571
companies
in the Metals & Mining industry
Industry Median: 1.83
vs ARAFF: 127.22
Arafura Rare Earths (OTCPK:ARAFF) 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.
Arafura Rare Earths Cash Ratio Related Terms
Arafura Rare Earths Cash Ratio Historical Data
* Premium members only.
The historical data trend for Arafura Rare Earths'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.
Arafura Rare Earths Cash Ratio Competitor Comparison
For the Other Industrial Metals & Mining subindustry, Arafura Rare Earths'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.
Arafura Rare Earths Cash Ratio vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Arafura Rare Earths's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Arafura Rare Earths's Cash Ratio falls into.
* 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.
Arafura Rare Earths (ARAFF) has a Cash Ratio of 127.22 as of Dec. 2025. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Arafura Rare Earths and its competitors. This is 1720% above median its historical median of 6.99. Over the past decade, Arafura Rare Earths' Cash Ratio has ranged from 1.86 to 127.22. According to the industry distribution chart, Arafura Rare Earths ranks #23 out of 2571 companies in the Metals & Mining industry, placing it in the top 0.90000000000001%.
Is Arafura Rare Earths' Cash Ratio too high?
Arafura Rare Earths' current Cash Ratio of 127.22 is 1720% above median its 10-year median of 6.99. Over the past 10 years, this metric has ranged from a low of 1.86 to a high of 127.22. The Metals & Mining industry median Cash Ratio is 1.83. Arafura Rare Earths' value of 127.22 is 6851.9% above this industry median. Based on the distribution chart, Arafura Rare Earths ranks #23 out of 2571 companies in the Metals & Mining industry, which is in the top quartile — a strong position relative to peers. Overall, Arafura Rare Earths has a GF Score™ of 34/100, reflecting its overall financial health beyond just this single metric.
How does Arafura Rare Earths' Cash Ratio compare to competitors?
According to the Metals & Mining industry distribution chart, Arafura Rare Earths ranks #23 out of 2571 companies for Cash Ratio. This places Arafura Rare Earths in the top 1% of its industry — outperforming the majority of peers. The industry median Cash Ratio is 1.83. Arafura Rare Earths' value of 127.22 is 6851.9% above this benchmark. Historically, Arafura Rare Earths' own Cash Ratio has ranged from 1.86 to 127.22 over the past decade. While the company's 10-year median is 6.99 vs. the industry median of 1.83, Arafura Rare Earths has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Metals & Mining company?
The median Cash Ratio among Metals & Mining companies is 1.83, based on 2,571 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arafura Rare Earths's current Cash Ratio of 127.22 is 6851.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Arafura Rare Earths and its competitors. For the Metals & Mining industry, the median Cash Ratio is 1.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arafura Rare Earths's current Cash Ratio is 127.22, which is 1720% above median its own 10-year median of 6.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arafura Rare Earths stock overvalued right now?
Arafura Rare Earths (ARAFF) has a current Cash Ratio of 127.22. The current Cash Ratio is 127.22, which is 1720% above median its 10-year median of 6.99 and 6851.9% above the Metals & Mining industry median of 1.83. Arafura Rare Earths' overall GF Score™ is 34/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Arafura Rare Earths (ARAFF), the current Cash Ratio is 127.22 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Arafura Rare Earths Ltd is engaged in mineral exploration, definition, and development of Neodymium-Praseodymium oxide and Mixed middle-heavy rare earth oxide products, mining and associated infrastructure, social and environmental feasibility evaluations, and Nolans Project engineering studies. Its products are used in catalytic converters in automobiles, consumer electronics, energy-efficiency lighting, optics, super alloys, advanced ceramics, and high-strength magnets.
34GF Score
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