Mota-Engil Africa NV (LTS:0R6D) Cash Ratio : 0.13 (As of Dec. 2014)

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What is Mota-Engil Africa NV 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. Mota-Engil Africa NV's Cash Ratio for the quarter that ended in Dec. 2014 was 0.13.

Mota-Engil Africa NV has a Cash Ratio of 0.13. 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 Mota-Engil Africa NV's Cash Ratio or its related term are showing as below:

LTS:0R6D's Cash Ratio is not ranked ^*
in the Construction industry.
Industry Median: 0.3
* Ranked among companies with meaningful Cash Ratio only.

Mota-Engil Africa NV Cash Ratio Historical Data

The historical data trend for Mota-Engil Africa NV'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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Mota-Engil Africa NV Cash Ratio Chart

Mota-Engil Africa NV Annual Data

Trend

Dec11

Dec12

Dec13

Dec14

Cash Ratio

0.16

0.12

0.13

Mota-Engil Africa NV Semi-Annual Data
	Dec11	Dec12	Dec13	Dec14
Cash Ratio	0.16	0.12	0.13	0.13

Competitive Comparison of Mota-Engil Africa NV's Cash Ratio

For the Engineering & Construction subindustry, Mota-Engil Africa NV'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.

Mota-Engil Africa NV's Cash Ratio Distribution in the Construction Industry

For the Construction industry and Industrials sector, Mota-Engil Africa NV's Cash Ratio distribution charts can be found below:

* The bar in red indicates where Mota-Engil Africa NV's Cash Ratio falls into.

Mota-Engil Africa NV Cash Ratio Calculation

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

Mota-Engil Africa NV's Cash Ratio for the fiscal year that ended in Dec. 2014 is calculated as:

Cash Ratio (A: Dec. 2014 )	=	Cash, Cash Equivalents, Marketable Securities	/	Total Current Liabilities
	=	123.814	/	989.449
	=	0.13

Mota-Engil Africa NV's Cash Ratio for the quarter that ended in Dec. 2014 is calculated as:

Cash Ratio (Q: Dec. 2014 )	=	Cash, Cash Equivalents, Marketable Securities	/	Total Current Liabilities
	=	123.814	/	989.449
	=	0.13

Mota-Engil Africa NV (LTS:0R6D) 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.

Mota-Engil Africa NV Cash Ratio Related Terms

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Mota-Engil Africa NV Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Mota-Engil Africa NV (LTS:0R6D) » Definitions » Cash Ratio

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.africa.mota-engil.com

Mota-Engil Africa NV was incorporated on October 31, 2012 by a notarial deed of incorporation as a private company with limited liability under the laws of the Netherlands. The Company is a provider of integrated engineering and construction services. The Company also provides other services, across its target markets in Sub-Saharan Africa. Its portfolio of services ranges from Engineering and Construction which includes infrastructure such as roads, railways, bridges and dams, mining services, civil construction works and real estate construction and services, Logistics which includes ports and other infrastructure management and Environment and Services which includes waste management and collection and water treatment and distribution. The Company currently operates in ten countries comprising its primary markets of Angola, Malawi and Mozambique as well as its other markets of Cape Verde, Ghana, SÃ£o TomÃ© and PrÃncipe, South Africa, Uganda, Zambia and Zimbabwe.

Mota-Engil Africa NV Headlines

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