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Virgin Australia HoldingsASX:VGN -1.86%8 Cash Ratio is 0.44 as of Dec. 2025, which is 29% above its 10-year median of 0.34. GuruFocus rates ASX:VGN with a GF Score™ of 8/100. The stock has 5 warning signs investors should review. Among 985 Transportation companies, Virgin Australia Holdings ranks worse than 54.42% on this metric.
Virgin Australia Holdings has a Cash Ratio of 0.44. 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 Virgin Australia Holdings's Cash Ratio or its related term are showing as below:
ASX:VGN'
s Cash Ratio Range Over the Past 10 Years
Min: 0.34 Med: 0.34 Max: 0.44
Current: 0.44
During the past 3 years, Virgin Australia Holdings's highest Cash Ratio was 0.44. The lowest was 0.34. And the median was 0.34.
ASX:VGN's Cash Ratio is ranked worse than 54.42% of 985
companies
in the Transportation industry
Industry Median: 0.51
vs ASX:VGN: 0.44
Virgin Australia Holdings (ASX:VGN) 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.
Virgin Australia Holdings Cash Ratio Related Terms
Virgin Australia Holdings 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.
For the Airlines subindustry, Virgin Australia Holdings'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.
Virgin Australia Holdings Cash Ratio vs Transportation Industry
For the Transportation industry and Industrials sector, Virgin Australia Holdings's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Virgin Australia Holdings'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.
Virgin Australia Holdings (ASX:VGN) has a Cash Ratio of 0.44 as of Dec. 2025. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Virgin Australia Holdings and its competitors. This is 29% above median its historical median of 0.34. Over the past decade, Virgin Australia Holdings' Cash Ratio has ranged from 0.34 to 0.44. According to the industry distribution chart, Virgin Australia Holdings ranks #536 out of 985 companies in the Transportation industry, placing it in the top 54.4%.
Is Virgin Australia Holdings' Cash Ratio too high?
Virgin Australia Holdings' current Cash Ratio of 0.44 is 29% above median its 10-year median of 0.34. Over the past 10 years, this metric has ranged from a low of 0.34 to a high of 0.44. The Transportation industry median Cash Ratio is 0.51. Virgin Australia Holdings' value of 0.44 is 13.7% below this industry median. Based on the distribution chart, Virgin Australia Holdings ranks #536 out of 985 companies in the Transportation industry, which is below the industry midpoint. Overall, Virgin Australia Holdings has a GF Score™ of 8/100, reflecting its overall financial health beyond just this single metric.
How does Virgin Australia Holdings' Cash Ratio compare to DAL and UAL?
According to the Transportation industry distribution chart, Virgin Australia Holdings ranks #536 out of 985 companies for Cash Ratio. This places Virgin Australia Holdings in the lower half of its industry. The industry median Cash Ratio is 0.51. Virgin Australia Holdings' value of 0.44 is 13.7% below this benchmark. Historically, Virgin Australia Holdings' own Cash Ratio has ranged from 0.34 to 0.44 over the past decade. While the company's 10-year median is 0.34 vs. the industry median of 0.51, Virgin Australia Holdings 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 Transportation company?
The median Cash Ratio among Transportation companies is 0.51, based on 985 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. Virgin Australia Holdings's current Cash Ratio of 0.44 is 13.7% 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 Virgin Australia Holdings and its competitors. For the Transportation industry, the median Cash Ratio is 0.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Virgin Australia Holdings's current Cash Ratio is 0.44, which is 29% above median its own 10-year median of 0.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Virgin Australia Holdings stock overvalued right now?
Virgin Australia Holdings (ASX:VGN) has a current Cash Ratio of 0.44. The current Cash Ratio is 0.44, which is 29% above median its 10-year median of 0.34 and 13.7% below the Transportation industry median of 0.51. Virgin Australia Holdings' overall GF Score™ is 8/100 with 5 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 Virgin Australia Holdings (ASX:VGN), the current Cash Ratio is 0.44 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.
Virgin Australia is Australia's second-largest airline, operating about a third of the domestic market in a two-player market with Qantas. Virgin is a value-focused carrier operating high-frequency, point-to-point domestic routes and select short-haul international flights. The airline targets leisure and small to medium enterprise travelers with mid-range pricing. The vast majority of revenue is generated by the core airlines segment.
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