Mullen Automotive has a Cash Ratio of 0.27. 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 Mullen Automotive's Cash Ratio or its related term are showing as below:
MULN'
s Cash Ratio Range Over the Past 10 Years
Min: 0.02 Med: 0.5 Max: 1.51
Current: 0.27
During the past 5 years, Mullen Automotive's highest Cash Ratio was 1.51. The lowest was 0.02. And the median was 0.50.
MULN's Cash Ratio is ranked worse than 58.49% of 1284
companies
in the Vehicles & Parts industry
Industry Median: 0.36
vs MULN: 0.27
Mullen Automotive Cash Ratio Historical Data
The historical data trend for Mullen Automotive'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 Mullen Automotive's Cash Ratio
For the Auto Manufacturers subindustry, Mullen Automotive'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.
Mullen Automotive's Cash Ratio Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Mullen Automotive's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Mullen Automotive's Cash Ratio falls into.
Mullen Automotive Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Mullen Automotive's Cash Ratio for the fiscal year that ended in Sep. 2023 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.
Mullen Automotive (NAS:MULN) 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.
Mullen Automotive Cash Ratio Related Terms
Thank you for viewing the detailed overview of Mullen Automotive's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Mullen Automotive (Mullen Automotive) Business Description
Mullen Automotive Inc is engaged in manufacturing electric vehicles and energy solutions. The company strives to make electric vehicles more accessible by building an end-to-end ecosystem that takes care of all aspects of electric vehicle ownership. The Company owns and partners with several synergistic businesses, all working towards the same goal of creating clean and scalable electric vehicles and energy solutions. The company has two segments Bollinger and Mullen/ELMS, which generates revenue.
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