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AvalonBay CommunitiesAVB +2.74%85 Cash Ratio is 0.08 as of Mar. 2026, which is 69% below its 10-year median of 0.26. GuruFocus rates AVB with a GF Score™ of 85/100 and a GF Value™ of $208.24 (Fairly Valued). The stock has 4 warning signs investors should review. Among 739 REITs companies, AvalonBay Communities ranks worse than 82.14% on this metric.
AvalonBay Communities has a Cash Ratio of 0.08. 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 AvalonBay Communities's Cash Ratio or its related term are showing as below:
AVB'
s Cash Ratio Range Over the Past 10 Years
Min: 0.04 Med: 0.26 Max: 1.09
Current: 0.08
During the past 13 years, AvalonBay Communities's highest Cash Ratio was 1.09. The lowest was 0.04. And the median was 0.26.
AVB's Cash Ratio is ranked worse than 82.14% of 739
companies
in the REITs industry
Industry Median: 0.36
vs AVB: 0.08
AvalonBay Communities (NYSE:AVB) 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.
* 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 REIT - Residential subindustry, AvalonBay Communities'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.
AvalonBay Communities Cash Ratio vs REITs Industry
For the REITs industry and Real Estate sector, AvalonBay Communities's Cash Ratio distribution charts can be found below:
* The bar in red indicates where AvalonBay Communities'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.
AvalonBay Communities (AVB) has a Cash Ratio of 0.08 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on AvalonBay Communities and its competitors. This is 69% below median its historical median of 0.26. Over the past decade, AvalonBay Communities' Cash Ratio has ranged from 0.04 to 1.09. According to the industry distribution chart, AvalonBay Communities ranks #607 out of 739 companies in the REITs industry, placing it in the top 82.1%.
Is AvalonBay Communities' Cash Ratio too high?
AvalonBay Communities' current Cash Ratio of 0.08 is 69% below median its 10-year median of 0.26. Over the past 10 years, this metric has ranged from a low of 0.04 to a high of 1.09. The REITs industry median Cash Ratio is 0.36. AvalonBay Communities' value of 0.08 is 77.8% below this industry median. Based on the distribution chart, AvalonBay Communities ranks #607 out of 739 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, AvalonBay Communities has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does AvalonBay Communities' Cash Ratio compare to EQR and ESS?
According to the REITs industry distribution chart, AvalonBay Communities ranks #607 out of 739 companies for Cash Ratio. This places AvalonBay Communities in the lower half of its industry. The industry median Cash Ratio is 0.36. AvalonBay Communities' value of 0.08 is 77.8% below this benchmark. Historically, AvalonBay Communities' own Cash Ratio has ranged from 0.04 to 1.09 over the past decade. While the company's 10-year median is 0.26 vs. the industry median of 0.36, AvalonBay Communities 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 REITs company?
The median Cash Ratio among REITs companies is 0.36, based on 739 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. AvalonBay Communities's current Cash Ratio of 0.08 is 77.8% 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 AvalonBay Communities and its competitors. For the REITs industry, the median Cash Ratio is 0.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AvalonBay Communities's current Cash Ratio is 0.08, which is 69% below median its own 10-year median of 0.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AvalonBay Communities stock overvalued right now?
Based on GuruFocus' analysis, AvalonBay Communities (AVB) is currently considered Fairly Valued. The stock's GF Value™ is $208.24, compared to a current price of $195.50 — trading 6.1% below its estimated fair value. The current Cash Ratio is 0.08, which is 69% below median its 10-year median of 0.26 and 77.8% below the REITs industry median of 0.36. AvalonBay Communities' overall GF Score™ is 85/100 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 AvalonBay Communities (AVB), the current Cash Ratio is 0.08 as of Mar. 2026. 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.
Is AvalonBay Communities (AVB) Overvalued in 2026?
Based on GuruFocus' analysis, AvalonBay Communities stock appears to be undervalued.
The current stock price of $195.50 is trading 6.1% below its estimated GF Value™ of $208.24.
GuruFocus considers AvalonBay Communities to be Fairly Valued.
Key valuation signals for AVB:
Cash Ratio: 0.08 (69% below median its 10-year median of 0.26)
GF Value™: $208.24 vs. price of $195.50 (6.1% below fair value)
Industry Position: 77.8% below the REITs median (#607 of 739)
No single metric tells the full story. See the AVB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AvalonBay Communities owns a portfolio of 296 apartment communities with more than 90,000 units and is developing 24 additional properties with approximately 8,600 units. The company focuses on owning large, high-quality properties in major metropolitan areas of New England, New York/New Jersey, Washington, D.C., California, and the Pacific Northwest.
85GF Score
Get the complete analysis for AVB
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