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Ali Alghanim Sons Automotive Co KSC has a Cash Ratio of 0.25. 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.
Ali Alghanim Sons Automotive Co KSC (KUW:ALG) 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.
Ali Alghanim Sons Automotive Co KSC Cash Ratio Related Terms
Ali Alghanim Sons Automotive Co KSC 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.
Ali Alghanim Sons Automotive Co KSC Cash Ratio Chart
For the Auto & Truck Dealerships subindustry, Ali Alghanim Sons Automotive Co KSC'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.
Ali Alghanim Sons Automotive Co KSC Cash Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Ali Alghanim Sons Automotive Co KSC's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Ali Alghanim Sons Automotive Co KSC'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.
Ali Alghanim Sons Automotive Co KSC (KUW:ALG) has a Cash Ratio of 0.25 as of Jun. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Ali Alghanim Sons Automotive Co KSC and its competitors. This is near median its historical median of 0.24. Over the past decade, Ali Alghanim Sons Automotive Co KSC's Cash Ratio has ranged from 0.14 to 0.38. According to the industry distribution chart, Ali Alghanim Sons Automotive Co KSC ranks #797 out of 1305 companies in the Vehicles & Parts industry, placing it in the top 61.1%.
Is Ali Alghanim Sons Automotive Co KSC's Cash Ratio too high?
Ali Alghanim Sons Automotive Co KSC's current Cash Ratio of 0.25 is near median its 10-year median of 0.24. Over the past 10 years, this metric has ranged from a low of 0.14 to a high of 0.38. The Vehicles & Parts industry median Cash Ratio is 0.35. Ali Alghanim Sons Automotive Co KSC's value of 0.25 is 28.6% below this industry median. Based on the distribution chart, Ali Alghanim Sons Automotive Co KSC ranks #797 out of 1305 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Ali Alghanim Sons Automotive Co KSC has a GF Score™ of 21/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ali Alghanim Sons Automotive Co KSC's Cash Ratio compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Ali Alghanim Sons Automotive Co KSC ranks #797 out of 1305 companies for Cash Ratio. This places Ali Alghanim Sons Automotive Co KSC in the lower half of its industry. The industry median Cash Ratio is 0.35. Ali Alghanim Sons Automotive Co KSC's value of 0.25 is 28.6% below this benchmark. Historically, Ali Alghanim Sons Automotive Co KSC's own Cash Ratio has ranged from 0.14 to 0.38 over the past decade. While the company's 10-year median is 0.24 vs. the industry median of 0.35, Ali Alghanim Sons Automotive Co KSC 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 Vehicles & Parts company?
The median Cash Ratio among Vehicles & Parts companies is 0.35, based on 1,305 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. Ali Alghanim Sons Automotive Co KSC's current Cash Ratio of 0.25 is 28.6% 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 Ali Alghanim Sons Automotive Co KSC and its competitors. For the Vehicles & Parts industry, the median Cash Ratio is 0.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ali Alghanim Sons Automotive Co KSC's current Cash Ratio is 0.25, which is near median its own 10-year median of 0.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ali Alghanim Sons Automotive Co KSC stock overvalued right now?
Based on GuruFocus' analysis, Ali Alghanim Sons Automotive Co KSC (KUW:ALG) is currently considered Fairly Valued. The stock's GF Value™ is KWD0.89, compared to a current price of KWD0.90 — trading 1.1% above its estimated fair value. The current Cash Ratio is 0.25, which is near median its 10-year median of 0.24 and 28.6% below the Vehicles & Parts industry median of 0.35. Ali Alghanim Sons Automotive Co KSC's overall GF Score™ is 21/100 with 7 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 Ali Alghanim Sons Automotive Co KSC (KUW:ALG), the current Cash Ratio is 0.25 as of Jun. 2026. 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 Ali Alghanim Sons Automotive Co KSC (KUW:ALG) Overvalued in 2026?
Based on GuruFocus' analysis, Ali Alghanim Sons Automotive Co KSC stock appears to be overvalued.
The current stock price of KWD0.90 is trading 1.1% above its estimated GF Value™ of KWD0.89.
GuruFocus considers Ali Alghanim Sons Automotive Co KSC to be Fairly Valued.
Key valuation signals for KUW:ALG:
Cash Ratio: 0.25 (near median its 10-year median of 0.24)
GF Value™: KWD0.89 vs. price of KWD0.90 (1.1% above fair value)
Industry Position: 28.6% below the Vehicles & Parts median (#797 of 1305)
No single metric tells the full story. See the KUW:ALG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ali Alghanim Sons Automotive Co KSC is engaged in the automotive business, with activities including the sale and purchase of cars and spare parts, import and export of light and heavy vehicles, car rental services, maintenance of vehicles, trading of auto spare parts, and equipment rental and maintenance. The Group operates across three geographical segments, namely the State of Kuwait, Iraq, and the United Arab Emirates, with the State of Kuwait contributing the majority of its revenue.
21GF Score
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