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Union de Cervecerias Peruanas Backus & Johnston has a Cash Ratio of 0.27. 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.
LIM:BACKUAC1's Cash Ratio is not ranked *
in the Beverages - Alcoholic industry.
Industry Median: 0.36 * Ranked among companies with meaningful Cash Ratio only.
Union de Cervecerias Peruanas Backus & Johnston (LIM:BACKUAC1) 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.
Union de Cervecerias Peruanas Backus & Johnston Cash Ratio Related Terms
Union de Cervecerias Peruanas Backus & Johnston 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.
Union de Cervecerias Peruanas Backus & Johnston Cash Ratio Chart
Union de Cervecerias Peruanas Backus & Johnston Annual Data
* 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.
Union de Cervecerias Peruanas Backus & Johnston Cash Ratio vs Beverages - Alcoholic Industry
* 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.
Union de Cervecerias Peruanas Backus & Johnston (LIM:BACKUAC1) has a Cash Ratio of 0.27 as of Dec. 2018. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Union de Cervecerias Peruanas Backus & Johnston and its competitors.
Is Union de Cervecerias Peruanas Backus & Johnston's Cash Ratio too high?
Union de Cervecerias Peruanas Backus & Johnston's current Cash Ratio is 0.27. The Beverages - Alcoholic industry median Cash Ratio is 0.36. Union de Cervecerias Peruanas Backus & Johnston's value of 0.27 is 25% below this industry median. Overall, Union de Cervecerias Peruanas Backus & Johnston has a GF Score™ of 23/100, reflecting its overall financial health beyond just this single metric.
How does Union de Cervecerias Peruanas Backus & Johnston's Cash Ratio compare to competitors?
Union de Cervecerias Peruanas Backus & Johnston's Cash Ratio of 0.27 can be compared against companies in the Beverages - Alcoholic industry. The industry median Cash Ratio is 0.36. Union de Cervecerias Peruanas Backus & Johnston's value of 0.27 is 25% below this benchmark. 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 Beverages - Alcoholic company?
The median Cash Ratio among Beverages - Alcoholic companies is 0.36, based on 202 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. Union de Cervecerias Peruanas Backus & Johnston's current Cash Ratio of 0.27 is 25% 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 Union de Cervecerias Peruanas Backus & Johnston and its competitors. For the Beverages - Alcoholic industry, the median Cash Ratio is 0.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Union de Cervecerias Peruanas Backus & Johnston's current Cash Ratio is 0.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Union de Cervecerias Peruanas Backus & Johnston stock overvalued right now?
Union de Cervecerias Peruanas Backus & Johnston (LIM:BACKUAC1) has a current Cash Ratio of 0.27. The current Cash Ratio is 0.27 and 25% below the Beverages - Alcoholic industry median of 0.36. Union de Cervecerias Peruanas Backus & Johnston's overall GF Score™ is 23/100. 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 Union de Cervecerias Peruanas Backus & Johnston (LIM:BACKUAC1), the current Cash Ratio is 0.27 as of Dec. 2018. 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.
Union de Cervecerias Peruanas Backus & Johnston SA is engaged in the business of production, packaging, sale, distribution, and all other types of business related to malted and malt beverages, non-alcoholic beverages, and carbonated waters. The company's main business also includes investment in securities of domestic and foreign companies; the exploitation of rural properties; the sale, processing, conservation, marketing, and export of agricultural products; and the provision of advisory services related to these products.
23GF Score
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