Rafhan Maize Product Co has a Cash Ratio of 0.49. 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 Rafhan Maize Product Co's Cash Ratio or its related term are showing as below:
KAR:RMPL'
s Cash Ratio Range Over the Past 10 Years
Min: 0.04 Med: 0.6 Max: 1.9
Current: 0.49
During the past 13 years, Rafhan Maize Product Co's highest Cash Ratio was 1.90. The lowest was 0.04. And the median was 0.60.
KAR:RMPL's Cash Ratio is ranked better than 56% of 1857
companies
in the Consumer Packaged Goods industry
Industry Median: 0.38
vs KAR:RMPL: 0.49
Rafhan Maize Product Co Cash Ratio Historical Data
* 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 Rafhan Maize Product Co's Cash Ratio
For the Farm Products subindustry, Rafhan Maize Product Co'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.
Rafhan Maize Product Co's Cash Ratio Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Rafhan Maize Product Co's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Rafhan Maize Product Co's Cash Ratio falls into.
Rafhan Maize Product Co Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Rafhan Maize Product Co'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.
Rafhan Maize Product Co (KAR:RMPL) 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.
Rafhan Maize Product Co Cash Ratio Related Terms
Thank you for viewing the detailed overview of Rafhan Maize Product Co's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Rafhan Maize Product Co (KAR:RMPL) Business Description
Rafhan Maize Product Co Ltd is involved in the business of using maize as the basic raw material to manufacture and sell industrial products. The firm's major products are Industrial Starches, Liquid Glucose, Dextrose, Dextrin, and Gluten Meals. It supplies its products to textiles, pharmaceuticals, paper, food, baking, confectionery, and other industries. The company sells its products in Pakistan and also exports them to other countries, of which key revenue is derived within Pakistan.
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