MEDIROM Healthcare Technologies (MEDIROM Healthcare Technologies) Cash Ratio : 0.04 (As of Dec. 2023)

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What is MEDIROM Healthcare Technologies 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. MEDIROM Healthcare Technologies's Cash Ratio for the quarter that ended in Dec. 2023 was 0.04.

MEDIROM Healthcare Technologies has a Cash Ratio of 0.04. 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 MEDIROM Healthcare Technologies's Cash Ratio or its related term are showing as below:

MRM' s Cash Ratio Range Over the Past 10 Years
Min: 0.04 Med: 0.15 Max: 0.56
Current: 0.04

During the past 6 years, MEDIROM Healthcare Technologies's highest Cash Ratio was 0.56. The lowest was 0.04. And the median was 0.15.

MRM's Cash Ratio is ranked worse than
94.39% of 107 companies
in the Personal Services industry
Industry Median: 0.62 vs MRM: 0.04

MEDIROM Healthcare Technologies Cash Ratio Historical Data

The historical data trend for MEDIROM Healthcare Technologies'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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MEDIROM Healthcare Technologies Cash Ratio Chart

MEDIROM Healthcare Technologies Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Cash Ratio

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0.24

0.56

0.12

0.17

0.04

MEDIROM Healthcare Technologies Semi-Annual Data
	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Cash Ratio	Get a 7-Day Free Trial						0.12	0.03	0.17	0.04	0.04

Competitive Comparison of MEDIROM Healthcare Technologies's Cash Ratio

For the Personal Services subindustry, MEDIROM Healthcare Technologies'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.

MEDIROM Healthcare Technologies's Cash Ratio Distribution in the Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, MEDIROM Healthcare Technologies's Cash Ratio distribution charts can be found below:

* The bar in red indicates where MEDIROM Healthcare Technologies's Cash Ratio falls into.

MEDIROM Healthcare Technologies Cash Ratio Calculation

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

MEDIROM Healthcare Technologies's Cash Ratio for the fiscal year that ended in Dec. 2023 is calculated as:

Cash Ratio (A: Dec. 2023 )	=	Cash, Cash Equivalents, Marketable Securities	/	Total Current Liabilities
	=	0.923	/	24.73
	=	0.04

MEDIROM Healthcare Technologies's Cash Ratio for the quarter that ended in Dec. 2023 is calculated as:

Cash Ratio (Q: Dec. 2023 )	=	Cash, Cash Equivalents, Marketable Securities	/	Total Current Liabilities
	=	0.923	/	24.73
	=	0.04

MEDIROM Healthcare Technologies (NAS:MRM) 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.

MEDIROM Healthcare Technologies Cash Ratio Related Terms

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MEDIROM Healthcare Technologies (MEDIROM Healthcare Technologies) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Personal Services » MEDIROM Healthcare Technologies Inc (NAS:MRM) » Definitions » Cash Ratio

Comparable Companies

Traded in Other Exchanges

N/A

Address

2-3-1 Daiba, Minato-ku, 16th Floor Tradepia Odaiba, Tokyo, JPN, 135-0091

Website

https://www.medirom.co.jp

MEDIROM Healthcare Technologies Inc provides health services. The company is a franchiser and operator of healthcare salons and operates in segments namely Relaxation Salon, Digital Preventative Healthcare, and Luxury Beauty Segment. The company generates a majority of its revenue from the Relaxation Salon business segment. Geographically, the company generates a maximum share of its revenue from Japan.