Libas Consumer Products has a Cash Ratio of 0.63. 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 Libas Consumer Products's Cash Ratio or its related term are showing as below:
NSE:LIBAS's Cash Ratio is not ranked *
in the Manufacturing - Apparel & Accessories industry.
Industry Median: 0.36 * Ranked among companies with meaningful Cash Ratio only.
Libas Consumer Products (NSE:LIBAS) 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.
Libas Consumer Products Cash Ratio Related Terms
Libas Consumer Products 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 Apparel Manufacturing subindustry, Libas Consumer Products'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.
Libas Consumer Products Cash Ratio vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Libas Consumer Products's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Libas Consumer Products'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.
Libas Consumer Products (NSE:LIBAS) has a Cash Ratio of 0.63 as of Sep. 2024. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Libas Consumer Products and its competitors.
Is Libas Consumer Products' Cash Ratio too high?
Libas Consumer Products' current Cash Ratio is 0.63. The Manufacturing - Apparel & Accessories industry median Cash Ratio is 0.36. Libas Consumer Products' value of 0.63 is 75% above this industry median. Overall, Libas Consumer Products has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does Libas Consumer Products' Cash Ratio compare to RL and LEVI?
Libas Consumer Products' Cash Ratio of 0.63 can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median Cash Ratio is 0.36. Libas Consumer Products' value of 0.63 is 75% above this benchmark. 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 Manufacturing - Apparel & Accessories company?
The median Cash Ratio among Manufacturing - Apparel & Accessories companies is 0.36, based on 1,017 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. Libas Consumer Products's current Cash Ratio of 0.63 is 75% 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 Libas Consumer Products and its competitors. For the Manufacturing - Apparel & Accessories 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. Libas Consumer Products's current Cash Ratio is 0.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Libas Consumer Products stock overvalued right now?
Libas Consumer Products (NSE:LIBAS) has a current Cash Ratio of 0.63. The current Cash Ratio is 0.63 and 75% above the Manufacturing - Apparel & Accessories industry median of 0.36. Libas Consumer Products' overall GF Score™ is 4/100. 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 Libas Consumer Products (NSE:LIBAS), the current Cash Ratio is 0.63 as of Sep. 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.
Libas Consumer Products Ltd is an Indian firm engaged in the business of manufacturing apparel. The company offers clothing for men and women which includes shirts, trousers, blazers, jackets, suits, sarees, among others. The business operates in a single segment being manufacturing and dealing in textiles. It derives revenue from the domestic sale of goods.
4GF Score
Get the complete analysis for NSE:LIBAS
Cash Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:LIBAS has been successfully added to your 
