HELLA GmbH KGaA has a Cash Ratio of 0.48. 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 HELLA GmbH KGaA's Cash Ratio or its related term are showing as below:
HLKHF'
s Cash Ratio Range Over the Past 10 Years
Min: 0.38 Med: 0.65 Max: 0.93
Current: 0.48
During the past 13 years, HELLA GmbH KGaA's highest Cash Ratio was 0.93. The lowest was 0.38. And the median was 0.65.
HLKHF's Cash Ratio is ranked better than 59.05% of 1299
companies
in the Vehicles & Parts industry
Industry Median: 0.36
vs HLKHF: 0.48
HELLA GmbH KGaA Cash Ratio Historical Data
The historical data trend for HELLA GmbH KGaA'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 HELLA GmbH KGaA's Cash Ratio
For the Auto Parts subindustry, HELLA GmbH KGaA'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.
HELLA GmbH KGaA's Cash Ratio Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, HELLA GmbH KGaA's Cash Ratio distribution charts can be found below:
* The bar in red indicates where HELLA GmbH KGaA's Cash Ratio falls into.
HELLA GmbH KGaA Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
HELLA GmbH KGaA'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.
HELLA GmbH KGaA (OTCPK:HLKHF) 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.
HELLA GmbH KGaA Cash Ratio Related Terms
Thank you for viewing the detailed overview of HELLA GmbH KGaA's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
HELLA GmbH & Co KGaA is a manufacturer of lighting and electronic components and systems for the automotive industry. The company also produces complete vehicle modules, air-conditioning systems, and vehicle electrical systems in its joint-venture companies, as well as products for specialist vehicles. Further, Hella operates a trade organisation for automotive parts, accessories, diagnosis, and services in Europe. The company is controlled through a pooled family majority shareholding in the group. The company has three reportable segments which are Lighting, Electronics and Lifecycle Solutions. The company generates majority of the revenue from Lighting segment.
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