Svenska Cellulosa AB 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 Svenska Cellulosa AB's Cash Ratio or its related term are showing as below:
FRA:SCA'
s Cash Ratio Range Over the Past 10 Years
Min: 0.01 Med: 0.1 Max: 0.28
Current: 0.03
During the past 13 years, Svenska Cellulosa AB's highest Cash Ratio was 0.28. The lowest was 0.01. And the median was 0.10.
FRA:SCA's Cash Ratio is ranked worse than 90.36% of 280
companies
in the Forest Products industry
Industry Median: 0.305
vs FRA:SCA: 0.03
Svenska Cellulosa AB Cash Ratio Historical Data
The historical data trend for Svenska Cellulosa AB'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 Svenska Cellulosa AB's Cash Ratio
For the Lumber & Wood Production subindustry, Svenska Cellulosa AB'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.
Svenska Cellulosa AB's Cash Ratio Distribution in the Forest Products Industry
For the Forest Products industry and Basic Materials sector, Svenska Cellulosa AB's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Svenska Cellulosa AB's Cash Ratio falls into.
Svenska Cellulosa AB Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Svenska Cellulosa AB'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.
Svenska Cellulosa AB (FRA:SCA) 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.
Svenska Cellulosa AB Cash Ratio Related Terms
Thank you for viewing the detailed overview of Svenska Cellulosa AB's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Svenska Cellulosa AB is Europe's private forest owner, engaged different business segments such as; the Forest segment which generates key revenue, supplies its industries with timber. The Wood segment includes five sawmills in northern Sweden and wood processing and distribution to the building materials trade in Sweden and France, The Pulp segment encompasses the production and sale of bleached softwood kraft pulp (NBSK) and chemi-thermomechanical pulp (CTMP), which are produced at the Ostrand pulp mill, The Containerboard segment includes packaging paper with kraft liner manufacturing at the Obbola and Munksund paper mills, and The Renewable Energy segment which encompasses production and sales of processed and unprocessed biofuels as well as liquid biofuels.
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