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BAE SystemsBAESY +0.15%88 Cash Ratio is 0.29 as of Dec. 2025, which is 9% below its 10-year median of 0.32. GuruFocus rates BAESY with a GF Score™ of 88/100 and a GF Value™ of $92.50 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 356 Aerospace & Defense companies, BAE Systems ranks worse than 64.89% on this metric.
BAE Systems has a Cash Ratio of 0.29. 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 BAE Systems's Cash Ratio or its related term are showing as below:
BAESY'
s Cash Ratio Range Over the Past 10 Years
Min: 0.25 Med: 0.32 Max: 0.43
Current: 0.29
During the past 13 years, BAE Systems's highest Cash Ratio was 0.43. The lowest was 0.25. And the median was 0.32.
BAESY's Cash Ratio is ranked worse than 64.89% of 356
companies
in the Aerospace & Defense industry
Industry Median: 0.45
vs BAESY: 0.29
BAE Systems (OTCPK:BAESY) 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.
BAE Systems Cash Ratio Related Terms
BAE Systems Cash Ratio Historical Data
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The historical data trend for BAE Systems'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 Aerospace & Defense subindustry, BAE 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.
BAE Systems Cash Ratio vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, BAE Systems's Cash Ratio distribution charts can be found below:
* The bar in red indicates where BAE 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.
BAE Systems (BAESY) has a Cash Ratio of 0.29 as of Dec. 2025. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on BAE Systems and its competitors. This is near median its historical median of 0.32. Over the past decade, BAE Systems' Cash Ratio has ranged from 0.25 to 0.43. According to the industry distribution chart, BAE Systems ranks #231 out of 356 companies in the Aerospace & Defense industry, placing it in the top 64.9%.
Is BAE Systems' Cash Ratio too high?
BAE Systems' current Cash Ratio of 0.29 is near median its 10-year median of 0.32. Over the past 10 years, this metric has ranged from a low of 0.25 to a high of 0.43. The Aerospace & Defense industry median Cash Ratio is 0.45. BAE Systems' value of 0.29 is 35.6% below this industry median. Based on the distribution chart, BAE Systems ranks #231 out of 356 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, BAE Systems has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does BAE Systems' Cash Ratio compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, BAE Systems ranks #231 out of 356 companies for Cash Ratio. This places BAE Systems in the lower half of its industry. The industry median Cash Ratio is 0.45. BAE Systems' value of 0.29 is 35.6% below this benchmark. Historically, BAE Systems' own Cash Ratio has ranged from 0.25 to 0.43 over the past decade. While the company's 10-year median is 0.32 vs. the industry median of 0.45, BAE Systems 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 an Aerospace & Defense company?
The median Cash Ratio among Aerospace & Defense companies is 0.45, based on 356 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. BAE Systems's current Cash Ratio of 0.29 is 35.6% 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 BAE Systems and its competitors. For the Aerospace & Defense industry, the median Cash Ratio is 0.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BAE Systems's current Cash Ratio is 0.29, which is near median its own 10-year median of 0.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BAE Systems stock overvalued right now?
Based on GuruFocus' analysis, BAE Systems (BAESY) is currently considered Modestly Overvalued. The stock's GF Value™ is $92.50, compared to a current price of $105.06 — trading 13.6% above its estimated fair value. The current Cash Ratio is 0.29, which is near median its 10-year median of 0.32 and 35.6% below the Aerospace & Defense industry median of 0.45. BAE Systems' overall GF Score™ is 88/100 with 2 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 BAE Systems (BAESY), the current Cash Ratio is 0.29 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.
Is BAE Systems (BAESY) Overvalued in 2026?
Based on GuruFocus' analysis, BAE Systems stock appears to be overvalued.
The current stock price of $105.06 is trading 13.6% above its estimated GF Value™ of $92.50.
GuruFocus considers BAE Systems to be Modestly Overvalued.
Key valuation signals for BAESY:
Cash Ratio: 0.29 (near median its 10-year median of 0.32)
GF Value™: $92.50 vs. price of $105.06 (13.6% above fair value)
Industry Position: 35.6% below the Aerospace & Defense median (#231 of 356)
No single metric tells the full story. See the BAESY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BAE Systems is a British global defense, security, and aerospace company and the largest defense contractor in Europe; it is one of six prime contractors to the US Department of Defense. For reporting purposes, the company has five operating segments: electronics systems is the group's US- and UK-based electronic warfare systems; the cyber, security, and intelligence segment supplies intelligence and security solutions to the US government; platforms and services manufactures combat vehicles and munitions and performs ship repair services to the US Defense Department; the air segment includes BAE's share of US and European air programs as well as its businesses in Saudi Arabia and Australia, and the maritime segment comprises UK land- and marine-based activities.
88GF Score
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