Danieli & C. Officine Meccaniche SpA has a Cash Ratio of 0.62. 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.
* 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.
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Danieli & C. Officine Meccaniche SpA Cash Ratio Chart
Competitive Comparison of Danieli & C. Officine Meccaniche SpA's Cash Ratio
For the Specialty Industrial Machinery subindustry, Danieli & C. Officine Meccaniche SpA'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.
Danieli & C. Officine Meccaniche SpA's Cash Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Danieli & C. Officine Meccaniche SpA's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Danieli & C. Officine Meccaniche SpA's Cash Ratio falls into.
Danieli & C. Officine Meccaniche SpA Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
* 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.
Danieli & C. Officine Meccaniche SpA (CHIX:DANRm) 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.
Danieli & C. Officine Meccaniche SpA Cash Ratio Related Terms
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Danieli & C. Officine Meccaniche SpA Business Description
Danieli & C. Officine Meccaniche SpA is an Italy-based company that is engaged in manufacturing and distribution of steel and other nonferrous metal products as well as plant building. The company operates through two segments, namely steelmaking and plant making. The Steelmaking segment manufactures ingots, forged bars, blooms, rolled bars, bar in coils and others. End customers primarily come from the mechanical, automotive, oil & gas, power generation and other sectors. The Plant Making segment designs and builds mines, pellet production plants, furnaces, rolling mills and other various plants and facilities. The company has a global presence, with Europe, Middle East and Far East being the three largest markets for the company.
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