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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.
PGS Software Cash Ratio Related Terms
PGS Software Cash Ratio Historical Data
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The historical data trend for PGS Software'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.
For the Software - Application subindustry, PGS Software'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.
PGS Software Cash Ratio vs Software Industry
For the Software industry and Technology sector, PGS Software's Cash Ratio distribution charts can be found below:
* The bar in red indicates where PGS Software'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.
PGS Software (LTS:0RK2) has a Cash Ratio of 1.73 as of Sep. 2021. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on PGS Software and its competitors. This is near median its historical median of 1.58. Over the past decade, PGS Software's Cash Ratio has ranged from 0.72 to 5.49.
Is PGS Software's Cash Ratio too high?
PGS Software's current Cash Ratio of 1.73 is near median its 10-year median of 1.58. Over the past 10 years, this metric has ranged from a low of 0.72 to a high of 5.49. The Software industry median Cash Ratio is 0.76. PGS Software's value of 1.73 is 127.6% above this industry median. Overall, PGS Software has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does PGS Software's Cash Ratio compare to CRM and INTU?
PGS Software's Cash Ratio of 1.73 can be compared against companies in the Software industry. The industry median Cash Ratio is 0.76. PGS Software's value of 1.73 is 127.6% above this benchmark. Historically, PGS Software's own Cash Ratio has ranged from 0.72 to 5.49 over the past decade. While the company's 10-year median is 1.58 vs. the industry median of 0.76, PGS Software has consistently been above the industry average. 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 Software company?
The median Cash Ratio among Software companies is 0.76, based on 2,746 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. PGS Software's current Cash Ratio of 1.73 is 127.6% 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 PGS Software and its competitors. For the Software industry, the median Cash Ratio is 0.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PGS Software's current Cash Ratio is 1.73, which is near median its own 10-year median of 1.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PGS Software stock overvalued right now?
PGS Software (LTS:0RK2) has a current Cash Ratio of 1.73. The current Cash Ratio is 1.73, which is near median its 10-year median of 1.58 and 127.6% above the Software industry median of 0.76. PGS Software's overall GF Score™ is 4/100 with 6 warning signs to review. 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 PGS Software (LTS:0RK2), the current Cash Ratio is 1.73 as of Sep. 2021. 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.
PGS Software SA provides software development and IT outsourcing services in Poland. It offers nearshore software outsourcing; mobile and web; application development; continuous delivery, quality analysis, and automation; and cloud services.
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