New Horizon Aircraft has a Cash Ratio of 1.39. 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 New Horizon Aircraft's Cash Ratio or its related term are showing as below:
HOVR'
s Cash Ratio Range Over the Past 10 Years
Min: 0.01 Med: 0.2 Max: 2.58
Current: 1.39
During the past 3 years, New Horizon Aircraft's highest Cash Ratio was 2.58. The lowest was 0.01. And the median was 0.20.
HOVR's Cash Ratio is ranked better than 79.81% of 312
companies
in the Aerospace & Defense industry
Industry Median: 0.36
vs HOVR: 1.39
New Horizon Aircraft Cash Ratio Historical Data
The historical data trend for New Horizon Aircraft'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 New Horizon Aircraft's Cash Ratio
For the Aerospace & Defense subindustry, New Horizon Aircraft'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.
New Horizon Aircraft's Cash Ratio Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, New Horizon Aircraft's Cash Ratio distribution charts can be found below:
* The bar in red indicates where New Horizon Aircraft'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.
New Horizon Aircraft (NAS:HOVR) 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.
New Horizon Aircraft Cash Ratio Related Terms
Thank you for viewing the detailed overview of New Horizon Aircraft's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
New Horizon Aircraft Ltd is an aerospace Original Equipment Manufacturer that is designing and aiming to build a next-generation hybrid electric vertical take-off and landing aircraft for the regional air mobility market. Its aircraft will offer a more efficient way to move people and goods at a regional scale, help to connect remote communities and advance its ability to deal with an increasing number of climate-related natural disasters such as wildfires, Floods and droughts. The company aims to deliver a hybrid electric 7-seat aircraft, called the Cavorite X7, that can take off and land vertically like and helicopter.
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