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Direct Digital HoldingsDRCT +6.04%43 Cash Ratio is 0.03 as of Mar. 2026, which is 81% below its 10-year median of 0.16. GuruFocus rates DRCT with a GF Score™ of 43/100 and a GF Value™ of $20.30 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 999 Media - Diversified companies, Direct Digital Holdings ranks worse than 92.79% on this metric.
Direct Digital Holdings has a Cash Ratio of 0.03. 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 Direct Digital Holdings's Cash Ratio or its related term are showing as below:
DRCT'
s Cash Ratio Range Over the Past 10 Years
Min: 0.03 Med: 0.16 Max: 0.48
Current: 0.03
During the past 7 years, Direct Digital Holdings's highest Cash Ratio was 0.48. The lowest was 0.03. And the median was 0.16.
DRCT's Cash Ratio is ranked worse than 92.79% of 999
companies
in the Media - Diversified industry
Industry Median: 0.57
vs DRCT: 0.03
Direct Digital Holdings (NAS:DRCT) 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.
Direct Digital Holdings Cash Ratio Related Terms
Direct Digital Holdings 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.
For the Advertising Agencies subindustry, Direct Digital Holdings'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.
Direct Digital Holdings Cash Ratio vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Direct Digital Holdings's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Direct Digital Holdings'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.
Direct Digital Holdings (DRCT) has a Cash Ratio of 0.03 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Direct Digital Holdings and its competitors. This is 81% below median its historical median of 0.16. Over the past decade, Direct Digital Holdings' Cash Ratio has ranged from 0.03 to 0.48. According to the industry distribution chart, Direct Digital Holdings ranks #927 out of 999 companies in the Media - Diversified industry, placing it in the top 92.8%.
Is Direct Digital Holdings' Cash Ratio too high?
Direct Digital Holdings' current Cash Ratio of 0.03 is 81% below median its 10-year median of 0.16. Over the past 10 years, this metric has ranged from a low of 0.03 to a high of 0.48. The Media - Diversified industry median Cash Ratio is 0.57. Direct Digital Holdings' value of 0.03 is 94.7% below this industry median. Based on the distribution chart, Direct Digital Holdings ranks #927 out of 999 companies in the Media - Diversified industry, which is in the bottom quartile relative to peers. Overall, Direct Digital Holdings has a GF Score™ of 43/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Direct Digital Holdings' Cash Ratio compare to HAO and DBMM?
According to the Media - Diversified industry distribution chart, Direct Digital Holdings ranks #927 out of 999 companies for Cash Ratio. This places Direct Digital Holdings in the lower half of its industry. The industry median Cash Ratio is 0.57. Direct Digital Holdings' value of 0.03 is 94.7% below this benchmark. Historically, Direct Digital Holdings' own Cash Ratio has ranged from 0.03 to 0.48 over the past decade. While the company's 10-year median is 0.16 vs. the industry median of 0.57, Direct Digital Holdings 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 a Media - Diversified company?
The median Cash Ratio among Media - Diversified companies is 0.57, based on 999 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. Direct Digital Holdings's current Cash Ratio of 0.03 is 94.7% 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 Direct Digital Holdings and its competitors. For the Media - Diversified industry, the median Cash Ratio is 0.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Direct Digital Holdings's current Cash Ratio is 0.03, which is 81% below median its own 10-year median of 0.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Direct Digital Holdings stock overvalued right now?
Based on GuruFocus' analysis, Direct Digital Holdings (DRCT) is currently considered Possible Value Trap. The stock's GF Value™ is $20.30, compared to a current price of $2.53 — trading 87.5% below its estimated fair value. The current Cash Ratio is 0.03, which is 81% below median its 10-year median of 0.16 and 94.7% below the Media - Diversified industry median of 0.57. Direct Digital Holdings' overall GF Score™ is 43/100 with 6 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 Direct Digital Holdings (DRCT), the current Cash Ratio is 0.03 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 Direct Digital Holdings (DRCT) Overvalued in 2026?
Based on GuruFocus' analysis, Direct Digital Holdings stock appears to be undervalued.
The current stock price of $2.53 is trading 87.5% below its estimated GF Value™ of $20.30.
GuruFocus considers Direct Digital Holdings to be Possible Value Trap.
Key valuation signals for DRCT:
Cash Ratio: 0.03 (81% below median its 10-year median of 0.16)
GF Value™: $20.30 vs. price of $2.53 (87.5% below fair value)
Industry Position: 94.7% below the Media - Diversified median (#927 of 999)
No single metric tells the full story. See the DRCT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Direct Digital Holdings Inc is an end-to-end, full-service programmatic advertising platform focused on providing advertising technology, data-driven campaign optimization, and other solutions to underserved and less efficient markets on both the buy-side and sell-side of the digital advertising ecosystem. The company operates two reportable segments: sell-side advertising, which includes the results of Colossus Media, and buy-side advertising, which includes the results of Orange 142 and Huddled Masses. All of the company's revenues are attributed to the United States.
43GF Score
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