Credo Technology Group Holding has a Cash Ratio of 7.71. 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 Credo Technology Group Holding's Cash Ratio or its related term are showing as below:
CRDO'
s Cash Ratio Range Over the Past 10 Years
Min: 3 Med: 7.02 Max: 10.18
Current: 7.71
During the past 5 years, Credo Technology Group Holding's highest Cash Ratio was 10.18. The lowest was 3.00. And the median was 7.02.
CRDO's Cash Ratio is ranked better than 92.81% of 1002
companies
in the Semiconductors industry
Industry Median: 1
vs CRDO: 7.71
Credo Technology Group Holding Cash Ratio Historical Data
* 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 Credo Technology Group Holding's Cash Ratio
For the Semiconductors subindustry, Credo Technology Group Holding'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.
Credo Technology Group Holding's Cash Ratio Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Credo Technology Group Holding's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Credo Technology Group Holding's Cash Ratio falls into.
Credo Technology Group Holding 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.
Credo Technology Group Holding (NAS:CRDO) 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.
Credo Technology Group Holding Cash Ratio Related Terms
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Credo Technology Group Holding Business Description
Credo Technology Group Holding Ltd delivers high-speed solutions to break bandwidth barriers on every wired connection in the data infrastructure market. It provides secure, high-speed connectivity solutions that deliver improved power and cost efficiency as data rates and corresponding bandwidth requirements increase exponentially throughout the data infrastructure market. It has a geographic presence in Hong Kong, the United States, Mainland China, Taiwan, and the Rest of the World.
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