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Billing Services Group has a Cash Ratio of 1.44. 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 Billing Services Group's Cash Ratio or its related term are showing as below:
LSE:BILL's Cash Ratio is not ranked *
in the Business Services industry.
Industry Median: 0.63 * Ranked among companies with meaningful Cash Ratio only.
Billing Services Group (LSE:BILL) 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.
* 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.
LSE:BILL vs GPN, CTAS, CPRT: Cash Ratio Comparison
For the Specialty Business Services subindustry, Billing Services Group'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.
Billing Services Group Cash Ratio vs Business Services Industry
For the Business Services industry and Industrials sector, Billing Services Group's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Billing Services Group'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.
Billing Services Group (LSE:BILL) has a Cash Ratio of 1.44 as of Jun. 2019. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Billing Services Group and its competitors.
Is Billing Services Group's Cash Ratio too high?
Billing Services Group's current Cash Ratio is 1.44. The Business Services industry median Cash Ratio is 0.63. Billing Services Group's value of 1.44 is 128.6% above this industry median.
How does Billing Services Group's Cash Ratio compare to GPN and CTAS?
Billing Services Group's Cash Ratio of 1.44 can be compared against companies in the Business Services industry. The industry median Cash Ratio is 0.63. Billing Services Group's value of 1.44 is 128.6% above 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 Business Services company?
The median Cash Ratio among Business Services companies is 0.63, based on 1,063 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. Billing Services Group's current Cash Ratio of 1.44 is 128.6% 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 Billing Services Group and its competitors. For the Business Services industry, the median Cash Ratio is 0.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Billing Services Group's current Cash Ratio is 1.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Billing Services Group stock overvalued right now?
Based on GuruFocus' analysis, Billing Services Group (LSE:BILL) is currently considered Possible Value Trap. The current Cash Ratio is 1.44 and 128.6% above the Business Services industry median of 0.63. 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 Billing Services Group (LSE:BILL), the current Cash Ratio is 1.44 as of Jun. 2019. 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.
Billing Services Group Ltd is focused on payment solutions. The company offers a powerful suite of financial clearinghouse services for merchants, online stores, and telecommunications companies. Its services include local exchange carrier (LEC) phone clearing, billing and settlement solutions, toll clearing services, a Wi-Fi wholesale settlement solution, and VoiceLog Third Party Verification. The company generates a majority of revenue from LEC billing. Its geographical segment includes North America and Europe, the Middle East and Africa. The company derives the maximum revenue from North America.
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