Houston American Energy has a Cash Ratio of 10.85. 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 Houston American Energy's Cash Ratio or its related term are showing as below:
FRA:8H6H'
s Cash Ratio Range Over the Past 10 Years
Min: 0.1 Med: 11.99 Max: 53.1
Current: 10.84
During the past 13 years, Houston American Energy's highest Cash Ratio was 53.10. The lowest was 0.10. And the median was 11.99.
FRA:8H6H's Cash Ratio is ranked better than 95% of 1019
companies
in the Oil & Gas industry
Industry Median: 0.41
vs FRA:8H6H: 10.84
Houston American Energy 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 Houston American Energy's Cash Ratio
For the Oil & Gas E&P subindustry, Houston American Energy'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.
Houston American Energy's Cash Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Houston American Energy's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Houston American Energy's Cash Ratio falls into.
Houston American Energy Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Houston American Energy's Cash Ratio for the fiscal year that ended in Dec. 2023 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.
Houston American Energy (FRA:8H6H) 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.
Houston American Energy Cash Ratio Related Terms
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Houston American Energy (FRA:8H6H) Business Description
Houston American Energy Corp is an independent oil and gas company focused on the development, exploration, exploitation, acquisition, and production of natural gas and crude oil properties. Its properties, and operations, are in the U.S. Permian Basin, the U.S. Gulf Coast region, particularly Texas and Louisiana, and in the South American country of Colombia. The company's an exploration and development projects are focused on existing property interests, and future acquisition of additional property interests, in the Texas Permian Basin, the onshore Texas and Louisiana Gulf Coast region, and in the South American country of Colombia. The Company majorly has operations in two geographical areas, the United States and Colombia.
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