Microwave Filter Co has a Cash Ratio of 1.49. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for Microwave Filter Co's Cash Ratio or its related term are showing as below:
MFCO's Cash Ratio is not ranked *
in the Hardware industry.
Industry Median: 0.66 * Ranked among companies with meaningful Cash Ratio only.
Microwave Filter Co Cash Ratio Historical Data
The historical data trend for Microwave Filter Co'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 Microwave Filter Co's Cash Ratio
For the Communication Equipment subindustry, Microwave Filter Co'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.
Microwave Filter Co's Cash Ratio Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Microwave Filter Co's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Microwave Filter Co's Cash Ratio falls into.
Microwave Filter Co Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Microwave Filter Co's Cash Ratio for the fiscal year that ended in Sep. 2018 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.
Microwave Filter Co (OTCPK:MFCO) 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.
Microwave Filter Co Cash Ratio Related Terms
Thank you for viewing the detailed overview of Microwave Filter Co's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Microwave Filter Co (Microwave Filter Co) Business Description
Microwave Filter Co Inc operates in the United States and principally in one Industry. The Company extends credit to business customers, including original equipment manufacturers (OEMs), distributors and other end users, based upon ongoing credit evaluations. MFC designs, develops, manufactures and sells electronic filters, both for radio and microwave frequencies, to help process signal distribution and to prevent unwanted signals from disrupting transmit or receive operations. Markets served include 5G, cable television, television and radio broadcast, satellite broadcast, mobile radio and commercial and defense electronics.
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