SBE-Varvit SpA has a Cash Ratio of 1.03. 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 SBE-Varvit SpA's Cash Ratio or its related term are showing as below:
FRA:O4W'
s Cash Ratio Range Over the Past 10 Years
Min: 0.5 Med: 0.77 Max: 1.03
Current: 1.03
During the past 4 years, SBE-Varvit SpA's highest Cash Ratio was 1.03. The lowest was 0.50. And the median was 0.77.
FRA:O4W's Cash Ratio is ranked better than 70.59% of 2982
companies
in the Industrial Products industry
Industry Median: 0.52
vs FRA:O4W: 1.03
SBE-Varvit SpA Cash Ratio Historical Data
The historical data trend for SBE-Varvit 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.
Competitive Comparison of SBE-Varvit SpA's Cash Ratio
For the Tools & Accessories subindustry, SBE-Varvit 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.
SBE-Varvit SpA's Cash Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, SBE-Varvit SpA's Cash Ratio distribution charts can be found below:
* The bar in red indicates where SBE-Varvit 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.
SBE-Varvit SpA (FRA:O4W) 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.
SBE-Varvit SpA Cash Ratio Related Terms
Thank you for viewing the detailed overview of SBE-Varvit SpA's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
SBE-Varvit SpA is a company involved in the production of fasteners, and mechanical fastening joints of fundamental importance for many industrial sectors. It serves various sectors by offering products including screws, nuts, and cold-pressed products, of which a majority are manufactured internally, at its fully verticalized production facilities. The company operates in a single segment which is the production and sale of screws, bolts, and other mechanical components Geographically, it generates maximum revenue from Italy and the rest from the United States, Germany, Spain, France, and other countries.
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