Franklin Resources has a Cash Ratio of 1.91. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for Franklin Resources's Cash Ratio or its related term are showing as below:
BEN'
s Cash Ratio Range Over the Past 10 Years
Min: 0.91 Med: 4.41 Max: 28.64
Current: 1.91
During the past 13 years, Franklin Resources's highest Cash Ratio was 28.64. The lowest was 0.91. And the median was 4.41.
BEN's Cash Ratio is ranked better than 54.62% of 650
companies
in the Asset Management industry
Industry Median: 1.55
vs BEN: 1.91
Franklin Resources Cash Ratio Historical Data
The historical data trend for Franklin Resources'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.
Competitive Comparison of Franklin Resources's Cash Ratio
For the Asset Management subindustry, Franklin Resources'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.
Franklin Resources's Cash Ratio Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Franklin Resources's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Franklin Resources'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.
Franklin Resources (NYSE:BEN) 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.
Franklin Resources Cash Ratio Related Terms
Thank you for viewing the detailed overview of Franklin Resources's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Franklin Resources provides investment services for individual and institutional investors. At the end of October 2024, Franklin had $1.631 trillion in managed assets, composed primarily of equity (38%), fixed-income (32%), multi-asset/balanced (11%) funds, alternatives (15%) and money market funds (4%). Distribution tends to be weighted equally between retail investors (53% of AUM) and institutional accounts (45%), with high-net-worth clients accounting for the remainder. Franklin is one of the more global of the us-based asset managers we cover, with 30% of its assets under management invested in global/international strategies and just as much sourced from clients domiciled outside the United States.
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