Valtecne SPA (MIL:VLT) Cash Ratio : 0.48 (As of Jun. 2023)

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What is Valtecne SPA 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. Valtecne SPA's Cash Ratio for the quarter that ended in Jun. 2023 was 0.48.

Valtecne SPA has a Cash Ratio of 0.48. 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 Valtecne SPA's Cash Ratio or its related term are showing as below:

MIL:VLT' s Cash Ratio Range Over the Past 10 Years
Min: 0.05 Med: 0.15 Max: 0.56
Current: 0.48

During the past 3 years, Valtecne SPA's highest Cash Ratio was 0.56. The lowest was 0.05. And the median was 0.15.

MIL:VLT's Cash Ratio is ranked worse than
53.7% of 2985 companies
in the Industrial Products industry
Industry Median: 0.54 vs MIL:VLT: 0.48

Valtecne SPA Cash Ratio Historical Data

The historical data trend for Valtecne 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.

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Valtecne SPA Cash Ratio Chart

Valtecne SPA Annual Data

Trend

Dec20

Dec21

Dec22

Cash Ratio

0.56

0.15

0.05

Valtecne SPA Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
Cash Ratio	Get a 7-Day Free Trial			-	0.15	0.13	0.05	0.48

Competitive Comparison of Valtecne SPA's Cash Ratio

For the Specialty Industrial Machinery subindustry, Valtecne 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.

Valtecne SPA's Cash Ratio Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Valtecne SPA's Cash Ratio distribution charts can be found below:

* The bar in red indicates where Valtecne SPA's Cash Ratio falls into.

Valtecne SPA Cash Ratio Calculation

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

Valtecne SPA's Cash Ratio for the fiscal year that ended in Dec. 2022 is calculated as:

Cash Ratio (A: Dec. 2022 )	=	Cash, Cash Equivalents, Marketable Securities	/	Total Current Liabilities
	=	0.572	/	11.675
	=	0.05

Valtecne SPA's Cash Ratio for the quarter that ended in Jun. 2023 is calculated as:

Cash Ratio (Q: Jun. 2023 )	=	Cash, Cash Equivalents, Marketable Securities	/	Total Current Liabilities
	=	6.356	/	13.3
	=	0.48

Valtecne SPA (MIL:VLT) 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.

Valtecne SPA Cash Ratio Related Terms

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