Axalta Coating Systems 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 Axalta Coating Systems's Cash Ratio or its related term are showing as below:
AXTA'
s Cash Ratio Range Over the Past 10 Years
Min: 0.44 Med: 0.6 Max: 1.15
Current: 0.44
During the past 13 years, Axalta Coating Systems's highest Cash Ratio was 1.15. The lowest was 0.44. And the median was 0.60.
AXTA's Cash Ratio is ranked worse than 53.43% of 1531
companies
in the Chemicals industry
Industry Median: 0.49
vs AXTA: 0.44
* 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 Axalta Coating Systems's Cash Ratio
For the Specialty Chemicals subindustry, Axalta Coating Systems'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.
Axalta Coating Systems's Cash Ratio Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Axalta Coating Systems's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Axalta Coating Systems'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.
Axalta Coating Systems (NYSE:AXTA) 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.
Axalta Coating Systems Cash Ratio Related Terms
Thank you for viewing the detailed overview of Axalta Coating Systems's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Axalta Coating Systems Ltd is a manufacturer, marketer and distributor of high-performance coatings systems. It operates in two segments, The Performance Coatings segment provides liquid and powder coatings solutions to a fragmented and local customer base. Its end markets include refinish and industrial. The Mobility Coatings segment relates to the provision of coating technologies to original equipment manufacturers of light and commercial vehicles. The company operates in the geographic areas of North America, EMEA countries, Asia-Pacific, and Latin America.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
AXTA has been successfully added to your 