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Loar HoldingsLOAR +4.25%16 Cash Ratio is 1.29 as of Mar. 2026, which is at its 10-year median of 1.29. GuruFocus rates LOAR with a GF Score™ of 16/100. The stock has 3 warning signs investors should review. Among 356 Aerospace & Defense companies, Loar Holdings ranks better than 74.72% on this metric.
Loar Holdings has a Cash Ratio of 1.29. 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 Loar Holdings's Cash Ratio or its related term are showing as below:
LOAR'
s Cash Ratio Range Over the Past 10 Years
Min: 0.42 Med: 1.29 Max: 2.22
Current: 1.29
During the past 4 years, Loar Holdings's highest Cash Ratio was 2.22. The lowest was 0.42. And the median was 1.29.
LOAR's Cash Ratio is ranked better than 74.72% of 356
companies
in the Aerospace & Defense industry
Industry Median: 0.45
vs LOAR: 1.29
Loar Holdings (NYSE:LOAR) 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.
Loar Holdings Cash Ratio Related Terms
Loar Holdings Cash Ratio Historical Data
* Premium members only.
The historical data trend for Loar Holdings'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.
For the Aerospace & Defense subindustry, Loar Holdings'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.
Loar Holdings Cash Ratio vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Loar Holdings's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Loar Holdings'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.
Loar Holdings (LOAR) has a Cash Ratio of 1.29 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Loar Holdings and its competitors. This is near median its historical median of 1.29. Over the past decade, Loar Holdings' Cash Ratio has ranged from 0.42 to 2.22. According to the industry distribution chart, Loar Holdings ranks #90 out of 356 companies in the Aerospace & Defense industry, placing it in the top 25.3%.
Is Loar Holdings' Cash Ratio too high?
Loar Holdings' current Cash Ratio of 1.29 is near median its 10-year median of 1.29. Over the past 10 years, this metric has ranged from a low of 0.42 to a high of 2.22. The Aerospace & Defense industry median Cash Ratio is 0.45. Loar Holdings' value of 1.29 is 186.7% above this industry median. Based on the distribution chart, Loar Holdings ranks #90 out of 356 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Loar Holdings has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Loar Holdings' Cash Ratio compare to HXL and AVAV?
According to the Aerospace & Defense industry distribution chart, Loar Holdings ranks #90 out of 356 companies for Cash Ratio. This puts Loar Holdings in the upper half of its industry. The industry median Cash Ratio is 0.45. Loar Holdings' value of 1.29 is 186.7% above this benchmark. Historically, Loar Holdings' own Cash Ratio has ranged from 0.42 to 2.22 over the past decade. While the company's 10-year median is 1.29 vs. the industry median of 0.45, Loar Holdings has consistently been above 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 an Aerospace & Defense company?
The median Cash Ratio among Aerospace & Defense companies is 0.45, based on 356 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. Loar Holdings's current Cash Ratio of 1.29 is 186.7% above 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 Loar Holdings and its competitors. For the Aerospace & Defense industry, the median Cash Ratio is 0.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Loar Holdings's current Cash Ratio is 1.29, which is near median its own 10-year median of 1.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Loar Holdings stock overvalued right now?
Loar Holdings (LOAR) has a current Cash Ratio of 1.29. The current Cash Ratio is 1.29, which is near median its 10-year median of 1.29 and 186.7% above the Aerospace & Defense industry median of 0.45. Loar Holdings' overall GF Score™ is 16/100 with 3 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 Loar Holdings (LOAR), the current Cash Ratio is 1.29 as of Mar. 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.
Loar Holdings Inc in the design, manufacture, and sale of niche aerospace and defense components that are essential for today's aircraft and aerospace and defense systems. Its manufactured products includes auto throttles, lap-belt airbags, two- and three-point seat belts, water purification systems, fire barriers, polyimide washers and bushings, latches, hold-open and tie rods, temperature and fluid sensors and switches, carbon and metallic brake discs, fluid and pneumatic-based ice protection, RAM air components, sealing solutions and motion and actuation devices, among others. Its operations are organized and managed as one segment designed to offer its customers aerospace-related parts and supplies.
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