DiageoHAM:GUI +0.27%67 Cash Ratio is 0.23 as of Dec. 2025, which is 10% above its 10-year median of 0.21. GuruFocus rates HAM:GUI with a GF Score™ of 67/100 and a GF Value™ of €27.88 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 204 Beverages - Alcoholic companies, Diageo ranks worse than 61.76% on this metric.
Diageo has a Cash Ratio of 0.23. 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 Diageo's Cash Ratio or its related term are showing as below:
HAM:GUI'
s Cash Ratio Range Over the Past 10 Years
Min: 0.11 Med: 0.21 Max: 0.52
Current: 0.23
During the past 13 years, Diageo's highest Cash Ratio was 0.52. The lowest was 0.11. And the median was 0.21.
HAM:GUI's Cash Ratio is ranked worse than 61.76% of 204
companies
in the Beverages - Alcoholic industry
Industry Median: 0.34
vs HAM:GUI: 0.23
Diageo (HAM:GUI) 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.
Diageo Cash Ratio Related Terms
Diageo Cash Ratio Historical Data
* Premium members only.
The historical data trend for Diageo'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 Beverages - Wineries & Distilleries subindustry, Diageo'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.
Diageo Cash Ratio vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Diageo's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Diageo'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.
Diageo (HAM:GUI) has a Cash Ratio of 0.23 as of Dec. 2025. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Diageo and its competitors. This is 10% above median its historical median of 0.21. Over the past decade, Diageo's Cash Ratio has ranged from 0.11 to 0.52. According to the industry distribution chart, Diageo ranks #126 out of 204 companies in the Beverages - Alcoholic industry, placing it in the top 61.8%.
Is Diageo's Cash Ratio too high?
Diageo's current Cash Ratio of 0.23 is 10% above median its 10-year median of 0.21. Over the past 10 years, this metric has ranged from a low of 0.11 to a high of 0.52. The Beverages - Alcoholic industry median Cash Ratio is 0.34. Diageo's value of 0.23 is 32.4% below this industry median. Based on the distribution chart, Diageo ranks #126 out of 204 companies in the Beverages - Alcoholic industry, which is below the industry midpoint. Overall, Diageo has a GF Score™ of 67/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Diageo's Cash Ratio compare to BF.B?
According to the Beverages - Alcoholic industry distribution chart, Diageo ranks #126 out of 204 companies for Cash Ratio. This places Diageo in the lower half of its industry. The industry median Cash Ratio is 0.34. Diageo's value of 0.23 is 32.4% below this benchmark. Historically, Diageo's own Cash Ratio has ranged from 0.11 to 0.52 over the past decade. While the company's 10-year median is 0.21 vs. the industry median of 0.34, Diageo 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 a Beverages - Alcoholic company?
The median Cash Ratio among Beverages - Alcoholic companies is 0.34, based on 204 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. Diageo's current Cash Ratio of 0.23 is 32.4% 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 Diageo and its competitors. For the Beverages - Alcoholic industry, the median Cash Ratio is 0.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diageo's current Cash Ratio is 0.23, which is 10% above median its own 10-year median of 0.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diageo stock overvalued right now?
Based on GuruFocus' analysis, Diageo (HAM:GUI) is currently considered Significantly Undervalued. The stock's GF Value™ is €27.88, compared to a current price of €18.27 — trading 34.5% below its estimated fair value. The current Cash Ratio is 0.23, which is 10% above median its 10-year median of 0.21 and 32.4% below the Beverages - Alcoholic industry median of 0.34. Diageo's overall GF Score™ is 67/100 with 5 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 Diageo (HAM:GUI), the current Cash Ratio is 0.23 as of Dec. 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 Diageo (HAM:GUI) Overvalued in 2026?
Based on GuruFocus' analysis, Diageo stock appears to be undervalued.
The current stock price of €18.27 is trading 34.5% below its estimated GF Value™ of €27.88.
GuruFocus considers Diageo to be Significantly Undervalued.
Key valuation signals for HAM:GUI:
Cash Ratio: 0.23 (10% above median its 10-year median of 0.21)
GF Value™: €27.88 vs. price of €18.27 (34.5% below fair value)
Industry Position: 32.4% below the Beverages - Alcoholic median (#126 of 204)
No single metric tells the full story. See the HAM:GUI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formed in 1997 through the merger of Grand Metropolitan and Guinness, Diageo is the largest distiller globally by sales. Diageo acquired some of the Seagram assets in 2001, which gave it brands such as Captain Morgan rum and Crown Royal Canadian whisky. Since then, mergers and acquisitions have mostly been bolt-on in nature, plugging gaps in the company's product and geographic portfolio.
67GF Score
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