Innovative Designs has a Cash Ratio of 0.62. 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 Innovative Designs's Cash Ratio or its related term are showing as below:
IVDN'
s Cash Ratio Range Over the Past 10 Years
Min: 0.06 Med: 0.54 Max: 2.38
Current: 0.62
During the past 13 years, Innovative Designs's highest Cash Ratio was 2.38. The lowest was 0.06. And the median was 0.54.
IVDN's Cash Ratio is ranked better than 67.97% of 1099
companies
in the Retail - Cyclical industry
Industry Median: 0.34
vs IVDN: 0.62
Innovative Designs Cash Ratio Historical Data
The historical data trend for Innovative Designs'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 Innovative Designs's Cash Ratio
For the Apparel Retail subindustry, Innovative Designs'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.
Innovative Designs's Cash Ratio Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Innovative Designs's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Innovative Designs'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.
Innovative Designs (OTCPK:IVDN) 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.
Innovative Designs Cash Ratio Related Terms
Thank you for viewing the detailed overview of Innovative Designs's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Innovative Designs Inc markets cold-weather recreational and industrial clothing products, as well as house wrap, which is made from INSULTEX, a low-density foamed polyethylene with buoyancy, scent block, and thermal resistant properties. The business activity of the firm is operated through two segments Apparel and Housewrap. The Apparel segment offers a range of cold-weather apparel and related items. The Housewrap segment includes its INSULTEX House Wrap and its own seam tape. It generates maximum revenue from the Housewrap segment. Majority of the revenue is from USA and Canada.
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