Indo Borax & Chemicals has a Cash Ratio of 10.46. 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 Indo Borax & Chemicals's Cash Ratio or its related term are showing as below:
BOM:524342'
s Cash Ratio Range Over the Past 10 Years
Min: 0.56 Med: 2.96 Max: 10.46
Current: 10.46
During the past 13 years, Indo Borax & Chemicals's highest Cash Ratio was 10.46. The lowest was 0.56. And the median was 2.96.
BOM:524342's Cash Ratio is ranked better than 97.92% of 1542
companies
in the Chemicals industry
Industry Median: 0.54
vs BOM:524342: 10.46
* 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 Indo Borax & Chemicals's Cash Ratio
For the Chemicals subindustry, Indo Borax & Chemicals'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.
Indo Borax & Chemicals's Cash Ratio Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Indo Borax & Chemicals's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Indo Borax & Chemicals's Cash Ratio falls into.
Indo Borax & Chemicals Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Indo Borax & Chemicals's Cash Ratio for the fiscal year that ended in Mar. 2024 is calculated as:
* 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.
Indo Borax & Chemicals (BOM:524342) 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.
Indo Borax & Chemicals Cash Ratio Related Terms
Thank you for viewing the detailed overview of Indo Borax & Chemicals's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Indo Borax & Chemicals (BOM:524342) Business Description
Indo Borax & Chemicals Ltd is engaged in the manufacturing and selling of chemical products. The company's product offerings include Boric acid powder, Boric acid granular, Boric acid, Borax decahydrate granular and Borax decahydrate crystal. The company is operating in a single reportable segment i.e. manufacturing and selling of Chemicals. Its products Boric acid powder has applications in metallurgical operation, electroplating industry, nylon dyeing, nylon manufacturing and agricultural use. It derives revenues from the sale of manufactured goods, traded goods and related services.
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