ReadSoft AB (LTS:0GQO) Cash Ratio : 0.17 (As of Jun. 2014)

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What is ReadSoft AB Cash Ratio?

The Cash Ratio measures a company’s ability to meet its short-term obligations with cash and near-cash resources. It is calculated as a company's Cash, Cash Equivalents, Marketable Securities divides by its Total Current Liabilities. ReadSoft AB's Cash Ratio for the quarter that ended in Jun. 2014 was 0.17.

ReadSoft AB has a Cash Ratio of 0.17. 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 ReadSoft AB's Cash Ratio or its related term are showing as below:

LTS:0GQO's Cash Ratio is not ranked ^*
in the Software industry.
Industry Median: 0.72
* Ranked among companies with meaningful Cash Ratio only.

ReadSoft AB Cash Ratio Historical Data

The historical data trend for ReadSoft AB'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.

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ReadSoft AB Cash Ratio Chart

ReadSoft AB Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Cash Ratio

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0.29

0.27

0.48

0.31

0.15

ReadSoft AB Quarterly Data
	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14
Cash Ratio	Get a 7-Day Free Trial															0.24	0.19	0.15	0.22	0.17

Competitive Comparison of ReadSoft AB's Cash Ratio

For the Software - Application subindustry, ReadSoft AB'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.

ReadSoft AB's Cash Ratio Distribution in the Software Industry

For the Software industry and Technology sector, ReadSoft AB's Cash Ratio distribution charts can be found below:

* The bar in red indicates where ReadSoft AB's Cash Ratio falls into.

ReadSoft AB Cash Ratio Calculation

The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.

ReadSoft AB's Cash Ratio for the fiscal year that ended in Dec. 2013 is calculated as:

Cash Ratio (A: Dec. 2013 )	=	Cash, Cash Equivalents, Marketable Securities	/	Total Current Liabilities
	=	60.449	/	405.709
	=	0.15

ReadSoft AB's Cash Ratio for the quarter that ended in Jun. 2014 is calculated as:

Cash Ratio (Q: Jun. 2014 )	=	Cash, Cash Equivalents, Marketable Securities	/	Total Current Liabilities
	=	71.3	/	417.1
	=	0.17

ReadSoft AB (LTS:0GQO) 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.

ReadSoft AB Cash Ratio Related Terms

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ReadSoft AB Business Description

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ReadSoft AB is a Sweden-based company that creates and markets software and services for document automation, processes such as data entry, information verification, document workflows, and e-voicing. The company operates in over 16 countries worldwide, with partnerships in an additional 70. The company offers solutions primarily for industries such as banking, manufacturing, service bureaus, market research, insurance, government, and medical. Major customers include IKEA, Audi, Porsche, Yves Rocher, Swedish Tax, DaimlerChrysler, HSBS Bank, Avon, Bosch, London Underground, New York Transit, Toyota, Volvo, Monoprix, Ericsson, and ING. The company is headquartered in Helsingborg, Sweden. The company offers ReadSoft DOCUMENTS, a complete software platform for document automation. The product incorporates five Automation Areas: Capture, capturing the information in any format and making it ready for electronic processing; Understand, enabling the computer to read, sort, interpret, extract, and index documents electronically; Manage, providing customers with control of electronic documents, including the verification and quality control with archiving and monitoring capabilities; Integrate, integration with the business software; and Interchange, Electronic Data Interchange. Capabilities within each Automation Area are customized to the needs of the customer, and solutions can be expanded to include any required extra capabilities. Also, this software can be integrated with systems such as SAP and Oracle E-Business Suite, Intentia, and IFS. ReadSoft business solutions for specific areas include: ReadSoft Documents for Mailrooms, Documents for EDI, Documents for Invoices, and Documents for Forms. Additionally, the company offers Professional Services such as project management and customization, Solution Optimization, Training, and Technical Support.

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