Atam Valves has a Cash Ratio of 0.58. 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 Atam Valves's Cash Ratio or its related term are showing as below:
BOM:543236'
s Cash Ratio Range Over the Past 10 Years
Min: 0.01 Med: 0.03 Max: 0.58
Current: 0.58
During the past 7 years, Atam Valves's highest Cash Ratio was 0.58. The lowest was 0.01. And the median was 0.03.
BOM:543236's Cash Ratio is ranked better than 52.55% of 2995
companies
in the Industrial Products industry
Industry Median: 0.54
vs BOM:543236: 0.58
Atam Valves Cash Ratio Historical Data
The historical data trend for Atam Valves'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 Atam Valves's Cash Ratio
For the Specialty Industrial Machinery subindustry, Atam Valves'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.
Atam Valves's Cash Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Atam Valves's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Atam Valves's Cash Ratio falls into.
Atam Valves Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Atam Valves'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.
Atam Valves (BOM:543236) 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.
Atam Valves Cash Ratio Related Terms
Thank you for viewing the detailed overview of Atam Valves's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Atam Valves Ltd is engaged in the business of manufacturing bronze, cast iron, cast steel, carbon steel, stainless steel, forged steel as well as gun metal industrial valves of various types and sizes ranging from 8 mm up to 350 mm. It manufactures boiler mountings and supplies various types of valves and fittings, steam traps, and strainers. The company's products range includes Air Valves; Ball Valves; Butterfly Valves; Check Valves; Cocks; Foot Valves; Gate Valves; Globe Valves; Injectors; Moisture Separators; Needle Valves; Non Return Valves; Parallel Slide Blow Off Valves; Plug Valves; Pressure Reducing Valves; Safety Valves; Sight Indicators; Steam Stop Valves; Steam Traps; Strainers; Water Level Gauges; and Wheel Valves.
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