Mercantile Ports and Logistics has a Cash Ratio of 0.39. 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 Mercantile Ports and Logistics's Cash Ratio or its related term are showing as below:
LSE:MPL'
s Cash Ratio Range Over the Past 10 Years
Min: 0.03 Med: 0.51 Max: 7.03
Current: 0.39
During the past 12 years, Mercantile Ports and Logistics's highest Cash Ratio was 7.03. The lowest was 0.03. And the median was 0.51.
LSE:MPL's Cash Ratio is ranked worse than 59.64% of 954
companies
in the Transportation industry
Industry Median: 0.55
vs LSE:MPL: 0.39
Mercantile Ports and Logistics 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 Mercantile Ports and Logistics's Cash Ratio
For the Marine Shipping subindustry, Mercantile Ports and Logistics'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.
Mercantile Ports and Logistics's Cash Ratio Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Mercantile Ports and Logistics's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Mercantile Ports and Logistics's Cash Ratio falls into.
Mercantile Ports and Logistics Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
* 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.
Mercantile Ports and Logistics (LSE:MPL) 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.
Mercantile Ports and Logistics Cash Ratio Related Terms
Thank you for viewing the detailed overview of Mercantile Ports and Logistics's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Mercantile Ports and Logistics (LSE:MPL) Business Description
Mercantile Ports and Logistics Ltd develops, owns, and operates port and logistics facilities. The site of the company's first project is at Karanja Creek in the Raigad district of Maharashtra, where it intends to develop and operate a modern and efficient port and logistics complex. At the Karanja port, the company focuses on mid-stream discharge and loading of cargo while vessels wait at anchorage for a berth in JNPT, and coastal movement of cargoes, such as containers, cement, and other break-bulk cargo, which typically ply in smaller vessels. The company has only one operating and geographic segment, being the project on hand in India. The company generates the majority of its revenue from lease income operations.
Mercantile Ports and Logistics (LSE:MPL) Headlines
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