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MichelinMEX:ML 83 Cash Ratio is 0.53 as of Dec. 2025, which is 56% above its 10-year median of 0.34. GuruFocus rates MEX:ML with a GF Score™ of 83/100 and a GF Value™ of MXN637.22. The stock has 6 warning signs investors should review. Among 1,309 Vehicles & Parts companies, Michelin ranks better than 62.03% on this metric.
Michelin has a Cash Ratio of 0.53. 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 Michelin's Cash Ratio or its related term are showing as below:
MEX:ML'
s Cash Ratio Range Over the Past 10 Years
Min: 0.22 Med: 0.34 Max: 0.69
Current: 0.53
During the past 13 years, Michelin's highest Cash Ratio was 0.69. The lowest was 0.22. And the median was 0.34.
MEX:ML's Cash Ratio is ranked better than 62.03% of 1309
companies
in the Vehicles & Parts industry
Industry Median: 0.37
vs MEX:ML: 0.53
Michelin (MEX:ML) 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.
Michelin Cash Ratio Related Terms
Michelin Cash Ratio Historical Data
* Premium members only.
The historical data trend for Michelin'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 Auto Parts subindustry, Michelin'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.
Michelin Cash Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Michelin's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Michelin'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.
Michelin (MEX:ML) has a Cash Ratio of 0.53 as of Dec. 2025. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Michelin and its competitors. This is 56% above median its historical median of 0.34. Over the past decade, Michelin's Cash Ratio has ranged from 0.22 to 0.69. According to the industry distribution chart, Michelin ranks #497 out of 1309 companies in the Vehicles & Parts industry, placing it in the top 38%.
Is Michelin's Cash Ratio too high?
Michelin's current Cash Ratio of 0.53 is 56% above median its 10-year median of 0.34. Over the past 10 years, this metric has ranged from a low of 0.22 to a high of 0.69. The Vehicles & Parts industry median Cash Ratio is 0.37. Michelin's value of 0.53 is 43.2% above this industry median. Based on the distribution chart, Michelin ranks #497 out of 1309 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Michelin has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does Michelin's Cash Ratio compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Michelin ranks #497 out of 1309 companies for Cash Ratio. This puts Michelin in the upper half of its industry. The industry median Cash Ratio is 0.37. Michelin's value of 0.53 is 43.2% above this benchmark. Historically, Michelin's own Cash Ratio has ranged from 0.22 to 0.69 over the past decade. While the company's 10-year median is 0.34 vs. the industry median of 0.37, Michelin 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 Vehicles & Parts company?
The median Cash Ratio among Vehicles & Parts companies is 0.37, based on 1,309 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. Michelin's current Cash Ratio of 0.53 is 43.2% 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 Michelin and its competitors. For the Vehicles & Parts industry, the median Cash Ratio is 0.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Michelin's current Cash Ratio is 0.53, which is 56% above median its own 10-year median of 0.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Michelin stock overvalued right now?
Michelin (MEX:ML) has a current Cash Ratio of 0.53. The stock's GF Value™ is MXN637.22, compared to a current price of MXN733.29 — trading 15.1% above its estimated fair value. The current Cash Ratio is 0.53, which is 56% above median its 10-year median of 0.34 and 43.2% above the Vehicles & Parts industry median of 0.37. Michelin's overall GF Score™ is 83/100 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 Michelin (MEX:ML), the current Cash Ratio is 0.53 as of Dec. 2025. 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.
Is Michelin (MEX:ML) Overvalued in 2026?
Based on GuruFocus' analysis, Michelin stock appears to be overvalued.
The current stock price of MXN733.29 is trading 15.1% above its estimated GF Value™ of MXN637.22.
Key valuation signals for MEX:ML:
Cash Ratio: 0.53 (56% above median its 10-year median of 0.34)
GF Value™: MXN637.22 vs. price of MXN733.29 (15.1% above fair value)
Industry Position: 43.2% above the Vehicles & Parts median (#497 of 1309)
No single metric tells the full story. See the MEX:ML stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Michelin manufactures tires for passenger vehicles. The company also makes tires for all types of commercial vehicles as well as bicycle, motorcycle, earthmover, aviation, and agricultural tires. Its operations are organized into three operating segments namely Automotive and two-wheel; Road transportation; and Specialty businesses. The company generates maximum revenue from Automotive segments. The Specialty businesses include the Mining, Beyond-road, Two-wheel and Aircraft tire activities, as well as the High-Tech Materials activities. The Services & Solutions businesses are included for the majority part in the Road transportation and related distribution segment.
83GF Score
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