Japan Hotel REIT Investment has a Cash Ratio of 0.62. 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 Japan Hotel REIT Investment's Cash Ratio or its related term are showing as below:
NIPOF'
s Cash Ratio Range Over the Past 10 Years
Min: 0.4 Med: 0.65 Max: 1.51
Current: 0.62
During the past 13 years, Japan Hotel REIT Investment's highest Cash Ratio was 1.51. The lowest was 0.40. And the median was 0.65.
NIPOF's Cash Ratio is ranked better than 62.82% of 745
companies
in the REITs industry
Industry Median: 0.36
vs NIPOF: 0.62
Japan Hotel REIT Investment (OTCPK:NIPOF) 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.
Japan Hotel REIT Investment Cash Ratio Related Terms
Japan Hotel REIT Investment Cash Ratio Historical Data
* 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.
For the REIT - Hotel & Motel subindustry, Japan Hotel REIT Investment'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.
Japan Hotel REIT Investment Cash Ratio vs REITs Industry
For the REITs industry and Real Estate sector, Japan Hotel REIT Investment's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Japan Hotel REIT Investment'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.
Japan Hotel REIT Investment (NIPOF) has a Cash Ratio of 0.62 as of Dec. 2025. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Japan Hotel REIT Investment and its competitors. This is near median its historical median of 0.65. Over the past decade, Japan Hotel REIT Investment's Cash Ratio has ranged from 0.40 to 1.51. According to the industry distribution chart, Japan Hotel REIT Investment ranks #277 out of 745 companies in the REITs industry, placing it in the top 37.2%.
Is Japan Hotel REIT Investment's Cash Ratio too high?
Japan Hotel REIT Investment's current Cash Ratio of 0.62 is near median its 10-year median of 0.65. Over the past 10 years, this metric has ranged from a low of 0.40 to a high of 1.51. The REITs industry median Cash Ratio is 0.36. Japan Hotel REIT Investment's value of 0.62 is 72.2% above this industry median. Based on the distribution chart, Japan Hotel REIT Investment ranks #277 out of 745 companies in the REITs industry, which is above the industry midpoint. Overall, Japan Hotel REIT Investment has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does Japan Hotel REIT Investment's Cash Ratio compare to HST and RHP?
According to the REITs industry distribution chart, Japan Hotel REIT Investment ranks #277 out of 745 companies for Cash Ratio. This puts Japan Hotel REIT Investment in the upper half of its industry. The industry median Cash Ratio is 0.36. Japan Hotel REIT Investment's value of 0.62 is 72.2% above this benchmark. Historically, Japan Hotel REIT Investment's own Cash Ratio has ranged from 0.40 to 1.51 over the past decade. While the company's 10-year median is 0.65 vs. the industry median of 0.36, Japan Hotel REIT Investment has consistently been above 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 REITs company?
The median Cash Ratio among REITs companies is 0.36, based on 745 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. Japan Hotel REIT Investment's current Cash Ratio of 0.62 is 72.2% above 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 Japan Hotel REIT Investment and its competitors. For the REITs industry, the median Cash Ratio is 0.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Hotel REIT Investment's current Cash Ratio is 0.62, which is near median its own 10-year median of 0.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Hotel REIT Investment stock overvalued right now?
Japan Hotel REIT Investment (NIPOF) has a current Cash Ratio of 0.62. The stock's GF Value™ is $708.08, compared to a current price of $471.74 — trading 33.4% below its estimated fair value. The current Cash Ratio is 0.62, which is near median its 10-year median of 0.65 and 72.2% above the REITs industry median of 0.36. Japan Hotel REIT Investment's overall GF Score™ is 79/100 with 5 warning signs 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 Japan Hotel REIT Investment (NIPOF), the current Cash Ratio is 0.62 as of Dec. 2025. 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.
Is Japan Hotel REIT Investment (NIPOF) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Hotel REIT Investment stock appears to be undervalued.
The current stock price of $471.74 is trading 33.4% below its estimated GF Value™ of $708.08.
Key valuation signals for NIPOF:
Cash Ratio: 0.62 (near median its 10-year median of 0.65)
GF Value™: $708.08 vs. price of $471.74 (33.4% below fair value)
Industry Position: 72.2% above the REITs median (#277 of 745)
No single metric tells the full story. See the NIPOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Hotel REIT Investment Corp is a real estate investment trust. It aims to achieve stable earnings and sustainable growth in the asset from mid- to long-term perspectives. The company invests in business hotels, resort hotels, and city hotels, mainly located in the metropolitan areas and other cities of Japan.
79GF Score
Get the complete analysis for NIPOF
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