Hochtief AG 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 Hochtief AG's Cash Ratio or its related term are showing as below:
LTS:0EPW'
s Cash Ratio Range Over the Past 10 Years
Min: 0.15 Med: 0.43 Max: 0.57
Current: 0.39
During the past 13 years, Hochtief AG's highest Cash Ratio was 0.57. The lowest was 0.15. And the median was 0.43.
LTS:0EPW's Cash Ratio is ranked better than 58.54% of 1703
companies
in the Construction industry
Industry Median: 0.3
vs LTS:0EPW: 0.39
Hochtief AG Cash Ratio Historical Data
The historical data trend for Hochtief AG'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.
Competitive Comparison of Hochtief AG's Cash Ratio
For the Engineering & Construction subindustry, Hochtief AG'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.
Hochtief AG's Cash Ratio Distribution in the Construction Industry
For the Construction industry and Industrials sector, Hochtief AG's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Hochtief AG's Cash Ratio falls into.
Hochtief AG Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Hochtief AG's Cash Ratio for the fiscal year that ended in Dec. 2023 is calculated as:
* 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.
Hochtief AG (LTS:0EPW) 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.
Hochtief AG Cash Ratio Related Terms
Thank you for viewing the detailed overview of Hochtief AG's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Hochtief AG develops and constructs building and infrastructure projects. It works on complex projects in transportation, energy, urban infrastructure, and mining markets. It expands transportation networks with roads, bridges, and tunnels, or designs and constructs office buildings, hospitals, and power plants. The company leans on expertise and technical know-how in developing, financing, building, and operating in designated business areas. Also, it will partner with external groups to work on specific components of a project. Hochtief reports operating segments by regional divisions: Americas, Asia Pacific, and Europe. The Americas and the Asia Pacific account for the majority of sales and are where the company's assets are located.
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