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Otofarma SpAMIL:OTO -1.43%16 Cash Ratio is 0.76 as of Dec. 2024, which is 49% above its 10-year median of 0.51. GuruFocus rates MIL:OTO with a GF Score™ of 16/100. The stock has 1 warning sign investors should review. Among 841 Medical Devices & Instruments companies, Otofarma SpA ranks worse than 57.67% on this metric.
Otofarma SpA has a Cash Ratio of 0.76. 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 Otofarma SpA's Cash Ratio or its related term are showing as below:
MIL:OTO'
s Cash Ratio Range Over the Past 10 Years
Min: 0.25 Med: 0.51 Max: 0.76
Current: 0.76
During the past 2 years, Otofarma SpA's highest Cash Ratio was 0.76. The lowest was 0.25. And the median was 0.51.
MIL:OTO's Cash Ratio is ranked worse than 57.67% of 841
companies
in the Medical Devices & Instruments industry
Industry Median: 0.98
vs MIL:OTO: 0.76
Otofarma SpA (MIL:OTO) 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.
Otofarma SpA Cash Ratio Related Terms
Otofarma SpA Cash Ratio Historical Data
* Premium members only.
The historical data trend for Otofarma SpA'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.
Otofarma SpA Cash Ratio Chart
Otofarma SpA Annual Data
Trend
Dec23
Dec24
Cash Ratio
0.25
0.76
Otofarma SpA Semi-Annual Data
Dec23
Dec24
Cash Ratio
0.25
0.76
MIL:OTO vs ABT, SYK, MDT: Cash Ratio Comparison
For the Medical Devices subindustry, Otofarma SpA'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.
Otofarma SpA Cash Ratio vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Otofarma SpA's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Otofarma SpA'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.
Otofarma SpA (MIL:OTO) has a Cash Ratio of 0.76 as of Dec. 2024. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Otofarma SpA and its competitors. This is 49% above median its historical median of 0.51. Over the past decade, Otofarma SpA's Cash Ratio has ranged from 0.25 to 0.76. According to the industry distribution chart, Otofarma SpA ranks #485 out of 841 companies in the Medical Devices & Instruments industry, placing it in the top 57.7%.
Is Otofarma SpA's Cash Ratio too high?
Otofarma SpA's current Cash Ratio of 0.76 is 49% above median its 10-year median of 0.51. Over the past 10 years, this metric has ranged from a low of 0.25 to a high of 0.76. The Medical Devices & Instruments industry median Cash Ratio is 0.98. Otofarma SpA's value of 0.76 is 22.4% below this industry median. Based on the distribution chart, Otofarma SpA ranks #485 out of 841 companies in the Medical Devices & Instruments industry, which is below the industry midpoint. Overall, Otofarma SpA has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Otofarma SpA's Cash Ratio compare to ABT and SYK?
According to the Medical Devices & Instruments industry distribution chart, Otofarma SpA ranks #485 out of 841 companies for Cash Ratio. This places Otofarma SpA in the lower half of its industry. The industry median Cash Ratio is 0.98. Otofarma SpA's value of 0.76 is 22.4% below this benchmark. Historically, Otofarma SpA's own Cash Ratio has ranged from 0.25 to 0.76 over the past decade. While the company's 10-year median is 0.51 vs. the industry median of 0.98, Otofarma SpA has consistently been below 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 Medical Devices & Instruments company?
The median Cash Ratio among Medical Devices & Instruments companies is 0.98, based on 841 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. Otofarma SpA's current Cash Ratio of 0.76 is 22.4% below 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 Otofarma SpA and its competitors. For the Medical Devices & Instruments industry, the median Cash Ratio is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otofarma SpA's current Cash Ratio is 0.76, which is 49% above median its own 10-year median of 0.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otofarma SpA stock overvalued right now?
Otofarma SpA (MIL:OTO) has a current Cash Ratio of 0.76. The current Cash Ratio is 0.76, which is 49% above median its 10-year median of 0.51 and 22.4% below the Medical Devices & Instruments industry median of 0.98. Otofarma SpA's overall GF Score™ is 16/100 with 1 warning sign 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 Otofarma SpA (MIL:OTO), the current Cash Ratio is 0.76 as of Dec. 2024. 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.
Otofarma SpA is engaged in the construction and production of hearing aids, is constantly growing in the audiological field to provide adequate responses to every type of hearing aid need to its customers who require the possible personalized application of custom-made hearing aids. It provides otoacoustic medical devices and TELEMEDICINE services exclusively in affiliated pharmacies, possessing a portfolio of Instrumental IT patents.
16GF Score
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