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National GridCHIX:NGL -0.51%73 Cash Ratio is 0.29 as of Mar. 2026, which is 3% below its 10-year median of 0.30. GuruFocus rates CHIX:NGL with a GF Score™ of 73/100 and a GF Value™ of £7.51 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 483 Utilities - Regulated companies, National Grid ranks worse than 54.87% on this metric.
National Grid 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 National Grid's Cash Ratio or its related term are showing as below:
CHIX:NGl'
s Cash Ratio Range Over the Past 10 Years
Min: 0.13 Med: 0.3 Max: 0.82
Current: 0.29
During the past 13 years, National Grid's highest Cash Ratio was 0.82. The lowest was 0.13. And the median was 0.30.
CHIX:NGl's Cash Ratio is ranked worse than 54.87% of 483
companies
in the Utilities - Regulated industry
Industry Median: 0.35
vs CHIX:NGl: 0.29
National Grid (CHIX:NGl) 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.
National Grid Cash Ratio Related Terms
National Grid Cash Ratio Historical Data
* Premium members only.
The historical data trend for National Grid'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 Utilities - Regulated Electric subindustry, National Grid'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.
National Grid Cash Ratio vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, National Grid's Cash Ratio distribution charts can be found below:
* The bar in red indicates where National Grid'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.
National Grid (CHIX:NGL) has a Cash Ratio of 0.29 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on National Grid and its competitors. This is near median its historical median of 0.30. Over the past decade, National Grid's Cash Ratio has ranged from 0.13 to 0.82. According to the industry distribution chart, National Grid ranks #265 out of 483 companies in the Utilities - Regulated industry, placing it in the top 54.9%.
Is National Grid's Cash Ratio too high?
National Grid's current Cash Ratio of 0.29 is near median its 10-year median of 0.30. Over the past 10 years, this metric has ranged from a low of 0.13 to a high of 0.82. The Utilities - Regulated industry median Cash Ratio is 0.35. National Grid's value of 0.29 is 17.1% below this industry median. Based on the distribution chart, National Grid ranks #265 out of 483 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, National Grid has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does National Grid's Cash Ratio compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, National Grid ranks #265 out of 483 companies for Cash Ratio. This places National Grid in the lower half of its industry. The industry median Cash Ratio is 0.35. National Grid's value of 0.29 is 17.1% below this benchmark. Historically, National Grid's own Cash Ratio has ranged from 0.13 to 0.82 over the past decade. While the company's 10-year median is 0.30 vs. the industry median of 0.35, National Grid 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 Utilities - Regulated company?
The median Cash Ratio among Utilities - Regulated companies is 0.35, based on 483 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. National Grid's current Cash Ratio of 0.29 is 17.1% 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 National Grid and its competitors. For the Utilities - Regulated industry, the median Cash Ratio is 0.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. National Grid's current Cash Ratio is 0.29, which is near median its own 10-year median of 0.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is National Grid stock overvalued right now?
Based on GuruFocus' analysis, National Grid (CHIX:NGL) is currently considered Significantly Overvalued. The stock's GF Value™ is £7.51, compared to a current price of £12.22 — trading 62.6% above its estimated fair value. The current Cash Ratio is 0.29, which is near median its 10-year median of 0.30 and 17.1% below the Utilities - Regulated industry median of 0.35. National Grid's overall GF Score™ is 73/100 with 5 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 National Grid (CHIX:NGL), the current Cash Ratio is 0.29 as of Mar. 2026. 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 National Grid (CHIX:NGL) Overvalued in 2026?
Based on GuruFocus' analysis, National Grid stock appears to be overvalued.
The current stock price of £12.22 is trading 62.6% above its estimated GF Value™ of £7.51.
GuruFocus considers National Grid to be Significantly Overvalued.
Key valuation signals for CHIX:NGL:
Cash Ratio: 0.29 (near median its 10-year median of 0.30)
GF Value™: £7.51 vs. price of £12.22 (62.6% above fair value)
Industry Position: 17.1% below the Utilities - Regulated median (#265 of 483)
No single metric tells the full story. See the CHIX:NGL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
National Grid owns and operates the electric transmission system in England and Wales. It sold the bulk of its UK gas transmission business in fiscal 2023 to fund the acquisition of PPL's UK power distribution assets. In the Northeastern United States, it serves electricity and gas customers combined in three states. It also owns regulated transmission electricity networks in the United States, metering services and merchant transmission lines in the UK.
73GF Score
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