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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.
First Lithium Cash Ratio Related Terms
First Lithium Cash Ratio Historical Data
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The historical data trend for First Lithium'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 Other Industrial Metals & Mining subindustry, First Lithium'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.
First Lithium Cash Ratio vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, First Lithium's Cash Ratio distribution charts can be found below:
* The bar in red indicates where First Lithium'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.
First Lithium (ASX:FL1) has a Cash Ratio of 1.55 as of Jun. 2025. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on First Lithium and its competitors. This is 88% below median its historical median of 12.73. Over the past decade, First Lithium's Cash Ratio has ranged from 0.03 to 49.87.
Is First Lithium's Cash Ratio too high?
First Lithium's current Cash Ratio of 1.55 is 88% below median its 10-year median of 12.73. Over the past 10 years, this metric has ranged from a low of 0.03 to a high of 49.87. The Metals & Mining industry median Cash Ratio is 1.85. First Lithium's value of 1.55 is 16.2% below this industry median. Overall, First Lithium has a GF Score™ of 22/100, reflecting its overall financial health beyond just this single metric.
How does First Lithium's Cash Ratio compare to competitors?
First Lithium's Cash Ratio of 1.55 can be compared against companies in the Metals & Mining industry. The industry median Cash Ratio is 1.85. First Lithium's value of 1.55 is 16.2% below this benchmark. Historically, First Lithium's own Cash Ratio has ranged from 0.03 to 49.87 over the past decade. While the company's 10-year median is 12.73 vs. the industry median of 1.85, First Lithium has consistently been below 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 1.85, based on 2,572 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. First Lithium's current Cash Ratio of 1.55 is 16.2% below 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 First Lithium and its competitors. For the Metals & Mining industry, the median Cash Ratio is 1.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Lithium's current Cash Ratio is 1.55, which is 88% below median its own 10-year median of 12.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First Lithium stock overvalued right now?
First Lithium (ASX:FL1) has a current Cash Ratio of 1.55. The current Cash Ratio is 1.55, which is 88% below median its 10-year median of 12.73 and 16.2% below the Metals & Mining industry median of 1.85. First Lithium's overall GF Score™ is 22/100 with 4 warning signs 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 First Lithium (ASX:FL1), the current Cash Ratio is 1.55 as of Jun. 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.
First Lithium Ltd is a mineral exploration and development company. It is focused on West African mineral exploration and development. The company is predominantly engaged in the acquisition, and progress exploration, of the two lithium mineral bearing permits, Faraba and Gouna in Mali (the Mali Lithium Project).
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