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ALA SpA has a Cash Ratio of 0.19. 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 ALA SpA's Cash Ratio or its related term are showing as below:
FRA:8WD'
s Cash Ratio Range Over the Past 10 Years
Min: 0.06 Med: 0.29 Max: 0.78
Current: 0.19
During the past 7 years, ALA SpA's highest Cash Ratio was 0.78. The lowest was 0.06. And the median was 0.29.
FRA:8WD's Cash Ratio is not ranked
in the Industrial Distribution industry.
Industry Median: 0.31
vs FRA:8WD: 0.19
ALA SpA (FRA:8WD) 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.
ALA SpA Cash Ratio Related Terms
ALA SpA Cash Ratio Historical Data
* Premium members only.
The historical data trend for ALA SpA'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 Industrial Distribution subindustry, ALA 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.
ALA SpA Cash Ratio vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, ALA SpA's Cash Ratio distribution charts can be found below:
* The bar in red indicates where ALA SpA'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.
ALA SpA (FRA:8WD) has a Cash Ratio of 0.19 as of Jun. 2025. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on ALA SpA and its competitors. This is 34% below median its historical median of 0.29. Over the past decade, ALA SpA's Cash Ratio has ranged from 0.06 to 0.78.
Is ALA SpA's Cash Ratio too high?
ALA SpA's current Cash Ratio of 0.19 is 34% below median its 10-year median of 0.29. Over the past 10 years, this metric has ranged from a low of 0.06 to a high of 0.78. The Industrial Distribution industry median Cash Ratio is 0.31. ALA SpA's value of 0.19 is 38.7% below this industry median. Overall, ALA SpA has a GF Score™ of 66/100, reflecting its overall financial health beyond just this single metric.
How does ALA SpA's Cash Ratio compare to GWW and FAST?
ALA SpA's Cash Ratio of 0.19 can be compared against companies in the Industrial Distribution industry. The industry median Cash Ratio is 0.31. ALA SpA's value of 0.19 is 38.7% below this benchmark. Historically, ALA SpA's own Cash Ratio has ranged from 0.06 to 0.78 over the past decade. While the company's 10-year median is 0.29 vs. the industry median of 0.31, ALA SpA 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 Industrial Distribution company?
The median Cash Ratio among Industrial Distribution companies is 0.31, based on 152 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. ALA SpA's current Cash Ratio of 0.19 is 38.7% 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 ALA SpA and its competitors. For the Industrial Distribution industry, the median Cash Ratio is 0.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ALA SpA's current Cash Ratio is 0.19, which is 34% below median its own 10-year median of 0.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ALA SpA stock overvalued right now?
ALA SpA (FRA:8WD) has a current Cash Ratio of 0.19. The stock's GF Value™ is €30.35, compared to a current price of €36.00 — trading 18.6% above its estimated fair value. The current Cash Ratio is 0.19, which is 34% below median its 10-year median of 0.29 and 38.7% below the Industrial Distribution industry median of 0.31. ALA SpA's overall GF Score™ is 66/100 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 ALA SpA (FRA:8WD), the current Cash Ratio is 0.19 as of Jun. 2025. 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 ALA SpA (FRA:8WD) Overvalued in 2026?
Based on GuruFocus' analysis, ALA SpA stock appears to be overvalued.
The current stock price of €36.00 is trading 18.6% above its estimated GF Value™ of €30.35.
Key valuation signals for FRA:8WD:
Cash Ratio: 0.19 (34% below median its 10-year median of 0.29)
GF Value™: €30.35 vs. price of €36.00 (18.6% above fair value)
Industry Position: 38.7% below the Industrial Distribution median
No single metric tells the full story. See the FRA:8WD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ALA SpA is a distributor and supply chain solutions provider to the industrial markets. It is involved in the distribution of components and equipment for use in the civil and military aeronautical sectors. The company also offers integrated logistics services for the rail, energy, and marine sectors. Its various product offerings include power systems, oxygen systems, gate valves, protection valves, fasteners, regulators, and others. Geographically, the company derives maximum revenue from its business in Italy and the rest from other parts of the European Union and other regions.
66GF Score
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