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NKT AS (FRA:NKT) Cash Ratio : 0.59 (As of Sep. 2024)


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What is NKT AS Cash Ratio?

The Cash Ratio measures a company’s ability to meet its short-term obligations with cash and near-cash resources. It is calculated as a company's Cash, Cash Equivalents, Marketable Securities divides by its Total Current Liabilities. NKT AS's Cash Ratio for the quarter that ended in Sep. 2024 was 0.59.

NKT AS has a Cash Ratio of 0.59. 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 NKT AS's Cash Ratio or its related term are showing as below:

FRA:NKT' s Cash Ratio Range Over the Past 10 Years
Min: 0.01   Med: 0.08   Max: 0.61
Current: 0.59

During the past 13 years, NKT AS's highest Cash Ratio was 0.61. The lowest was 0.01. And the median was 0.08.

FRA:NKT's Cash Ratio is ranked better than
54.12% of 2971 companies
in the Industrial Products industry
Industry Median: 0.52 vs FRA:NKT: 0.59

NKT AS Cash Ratio Historical Data

The historical data trend for NKT AS'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.

* Premium members only.

NKT AS Cash Ratio Chart

NKT AS Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cash Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.01 0.31 0.19 0.19 0.51

NKT AS Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Cash Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.48 0.51 0.47 0.61 0.59

Competitive Comparison of NKT AS's Cash Ratio

For the Electrical Equipment & Parts subindustry, NKT AS'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.


NKT AS's Cash Ratio Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, NKT AS's Cash Ratio distribution charts can be found below:

* The bar in red indicates where NKT AS's Cash Ratio falls into.



NKT AS Cash Ratio Calculation

The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.

NKT AS's Cash Ratio for the fiscal year that ended in Dec. 2023 is calculated as:

Cash Ratio (A: Dec. 2023 )=Cash, Cash Equivalents, Marketable Securities/Total Current Liabilities
=887.9/1746.1
=0.51

NKT AS's Cash Ratio for the quarter that ended in Sep. 2024 is calculated as:

Cash Ratio (Q: Sep. 2024 )=Cash, Cash Equivalents, Marketable Securities/Total Current Liabilities
=1359/2309
=0.59

* 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.


NKT AS  (FRA:NKT) 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.


NKT AS Cash Ratio Related Terms

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NKT AS Business Description

Traded in Other Exchanges
Address
Vibeholms Alle 20, Broendby, DNK, 2605
NKT AS is a Denmark-based holding company that acquires, owns, and manages industrial companies in three business areas: Solutions, Applications, and Service and Accessories. NKT provides cables for power infrastructure, including onshore and offshore power transmission system, and its solutions bring power to interconnections, hydro-electric, and nuclear power plants, including onshore and offshore wind farms, oil and gas platforms, and solar energy. NKT Photonics, a supplier of fiber lasers and photonic crystal fibers. Geographically, the company operates and derives its majority revenue from mainland Europe, but it's also expanding its business to the U.S., China, and the U.K.

NKT AS Headlines

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